Progress Residential interview question

How will bumping up the asking price effect the cap rate.

Interview Answers

Anonymous

21 Dec 2018

Will lower it.

Anonymous

18 Aug 2022

It will do nothing as it is only an asking price. A guess. Cap rate is based in part on recent sales used to determine the property value. not an ask/offer price. An asking price does nto mean the property will sell for that amount. It is just a starting point in a negotiation.