The list price, in the real estate world, is the suggested gross sale price of real estate property when it is put on the market. In other words, it's the seller's asking price.

Breaking Down List Price

The listing agreement is a legal contract between the property owner and the real estate broker. The type of 澳洲幸运5官方开奖结果体彩网:listing agreement determines the nature of the relationship between the two and what is required of the real estate broker. The listing agreement also will lay out how the property is advertised and the compensation for the real estate broker. One of the issues addressed in the listing contract is the list price.

The property sells for the sales price, which may be higher or lower than the initial list price. The proceeds recouped by the seller—after the sale—will be the sales price minus any outstanding balance on the mortgage, unpaid real estate taxes, special assessments, or any other liens and/or 澳洲幸运5官方开奖结果体彩网:encumbrances attached to the property.

How To Determine a List Price

The 澳洲幸运5官方开奖结果体彩网:comparative market analysis may be the best tool in determining a competitive list price in certain areas. Real estate agents usually perform this type of analysis by researching the prices of similar properties sold in the vicinity. Being that no two properties are exactly alike, agents will make proper adjustments to account for differences among houses sold in a specific area to come up with a fair list price. 

If the property is so unique—either to its geography or in its structure—that no 澳洲幸运5官方开奖结果体彩网:comparable properties can be found, the owner may need to hire a for𓂃mal appraiser to determine the list price. 

Flexibility in the List Price

Once a list price is agreed upon, it isn't set in stone. Different 澳洲幸运5官方开奖结果体彩网:variables can cause the owner to either raise or lower the suggested cost of the properꦑty while it ꦺis still on the market.

If the list price is "firm," it means that the seller isn't willing to negotiate. In many instances, however, the list price is set with the expectation that a potential buyer will offer less, and so the list price is preemptively set higher than what the seller expects. If a property is in high demand, the sales price can exceed the list price. 

The Bottom Line

In a real estate transaction, the list price is the suggested gross sale price of a property when it is placed on the market. The listing agreement for the property determines the list price, as well as the compensation for the real estate broker. Once a list price is determined, be aware that it can change. Various circumstances can cause the seller to either lower the suggested price of the property or accept a higher offer for it while it's on the market.