What is a "list price" in real estate?

A "list price" in real estate refers to the price at which a property is advertised for sale. This is the initial price that sellers set when they enter the market, and it serves as a starting point for negotiations between potential buyers and the seller. The purpose of the list price is to attract buyers and generate interest in the property.

While the final sale price, which is the price agreed upon between the buyer and the seller, is an essential aspect of a real estate transaction, it is not the definition of a list price. Additionally, the ideal price a seller wants to receive can vary and does not necessarily reflect what the property is listed for in the market. Lastly, the market value assessed by the local government is related to property taxes and may not correspond directly with the list price, as this value is determined by various factors including local economic conditions, whereas the list price is set by the seller based on their expectations and market strategy.