What Does List Price Mean?

The list price of a home on the real estate market refers to the price the owner is asking for his home. Setting the right list price will make the difference between a stress-free sale with little negotiation or a long period on the market with no prospective buyers.

Significance

The list price does not necessarily reflect the value of the home. It can be lower or higher at the discretion of the owner.

CMA

CMA is a comparative market analysis. A comparative market analysis is performed by a licensed Realtor and uses the average price of similar houses for sale and sold in the area to arrive at a list price.

Appraisal

A home appraisal conducted by a licensed appraiser can help determine a list price.

Break Even

The list price of a property may be set to meet mortgage or other financial obligations associated with the property.

Negotiation

The list price is the starting point in the negotiation process. When seeking to purchase a home, a buyer can offer the list price or another price. The seller can accept the buyer's offer or counter with another price.

References

• Multiple Listing Service Home Value
• Setting a List Price