Important takeouts:
The list price is the initial asking price. The selling price is the final agreed price. The difference between the two reflects the market situation and the outcome of negotiations.
In the real estate world, terms like “table price” and “selling price” are often heard. They may sound similar, but they have very different stories about the status of their homes in the market. Understanding the distinction between these two is important for making informed decisions, whether you buy or sell. In this Redfin Real Estate Article, you will find knowledge to help you sell your home faster as it helps you understand the prices and selling prices.
How much is the regular price?
Think of the list price as the initial asking price for your home. It is often the amount of money that sellers publicly promote their property with the help of real estate agents. This price is usually determined by a combination of factors including:
Market Status: What are similar homes in the area for sale? Is it a buyer or seller market? Home Features: Property size, age, condition and amenities all play a role. Seller’s goal: How quickly do sellers need to move? Do they want to maximize profits or prioritize fast sales?
Regular prices are essentially the starting point, strategic numbers designed to attract and generate interest in potential buyers.
What is the selling price?
The selling price, also known as the selling price or closing price, is the final amount that the buyer actually pays to the home. This is the price recorded in the official sales agreement upon completion of the transaction. The selling price can be higher or lower than the list price, which is the result of negotiations between the buyer and seller.
Several factors can affect the final selling price.
Negotiation Skills: Skilled negotiators on both sides can have a significant impact on the outcome. Buyer Demand: In a hot market with multiple offers, the selling price often exceeds the list price. Home inspection results: Issues discovered during the inspection can lead to price adjustments. Evaluation Results: If the home is rated as less than the agreed price, the buyer’s lender may not approve the full loan amount, potentially leading to renegotiation.
Why the difference between list price and selling price issue is important
The gap between list price and selling price can reveal a lot about the real estate market and specific real estate.
For Sellers: If your home sells significantly less than your list price, it may indicate that your initial price is too high in the market or that there was a fundamental problem with the real estate. Conversely, selling prices beyond the list means that your home has generated strong buyer interest at a competitive price. For buyers: Seeing consistently selling homes that are consistently above the price in a given region suggests a competitive market and may need to provide prompt and potentially ask price. If the home is below the list price, there could be more room for negotiation.
Frequently Asked Questions: Price and Sale Price Price
Find out why this distinction is important in today’s marketplace from tricky questions that home sellers and buyers ask about price and selling prices.
Is it always better to list a house that is more expensive than I expect to sell my house?
That’s not necessarily the case. Some sellers aim to leave the negotiable, but they can block potential buyers and allow your home to sit in the market for longer. Well-studied and competitive pricing is often the most effective strategy.
What if the home is sold accurately at that price?
This can happen in a balanced market where initial pricing is spot-on and both parties are satisfied with the terms.
How can I know the selling price of a house in my area?
Redfin real estate agents can provide comparable sales data, including the final sales price of a home recently sold in your neighborhood. This information is invaluable to both buyers and sellers.
