List Price Vs Sales Price Table of Contents
If you want to sell an item in the market and want to know the worth of your property, understanding the difference between list and sales price is vital. However, you will find other terms like selling price useful as well.
Next time you are with a real estate agent you will be on the same page with him/her.
We will be comparing the list price vs sales price in this blog post.
List price is the actual price you list your property for in the market. You can increase or reduce the price during the listing period before selling the property. You can check other similar properties in the market to get an idea of what to do and how to do it.
A property list price does not reflect the actual value of the property. The fact that the list price of a property is $2 million does not mean that the property is worth that amount.
List price is important when putting up your property for sale in the market. You can check what others are doing in your area and compare their property and price then come up with an excellent idea on how to implement that on your property.
The sales price is the actual or final price your house for example was sold for. The actual price of a similar property in your neighborhood that was sold for the past 10 months will help you to estimate the current worth of your house. The price of the previously sold house in your neighborhood shows what a prospective buyer will pay for the same property, and that is appraisers estimate the value of a property.
Sometimes realtors use the word list price and selling price interchangeably. But selling price means the real amount you sold a property for.
A legal agreement between a property owner and a realtor is called a listing agreement. The type of listing agreement ascertains the type of relationship between the property owner and the realtor and also what is needed from the real estate agent. The listing agreement will detail out how the property will be advertised, the compensation to be received by the agent. The list price is being discussed in the listing contract.
The best method of checking a competitive list price is by using comparative market analysis. This analysis is being carried out by the realtor when checking the price of similar property sold within the area in the past.
To determine a fair price for a particular property, the realtor will be responsible for making the adjustment to meet the current demand so as to differentiate the property from the previous one sold in the area, this method is known as a comparative market analysis.
Using a comparative market analysis method to determine the value of a property is not an official evaluation. But a realtor should use the method to determine a reasonable price for the property. However, if the property is distinctive either by structure or geography that you can’t compare any property with it in that area, then the property owners will have to hire a professional appraiser to calculate the list price.
The list price is not stable; it can actually increase or decrease. Different factors can cause the property owner to raise or reduce the property while it is in the market.
The list price is negotiable, in most cases, the list price is set with the expectation that a prospect will negotiate and offer less. However, the price is set higher than the actual price, but if the property is in high demand, the sales price can be higher than the list price.
The list price is the actual price the seller wants to sell the property and the sale price is the final price a property sells for. The list price is flexible and can change before the house is being sold. To help you determine the value of your property, check out some sites online to know what works for others and use it to determine the value of your property before listing it. It is important to employ the service of a professional real estate agent when selling your property to perfect the work for you.
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