In this article, I will discuss the Difference between List Price and Sales Price.
Understanding the distinction between a list price, selling price, and even a sale price can be important when you decide to offer your home for sale and attempt to determine what the property may be worth in the current market. Make sure you are speaking the same language if you are working with a real estate agent who is helping you price your home.
Difference between List Price and Sales Price
Well, the List price is the figure that you go to market with.
The price that everyone sees and associates with when they see your house. When buyers see this figure, they make an opinion. If the property is priced low, high, or just right.
When you post your home for sale, it is the price you are asking. If you decide to drop or raise the asking price before the listing ends, this pricing may change. You must research comparable houses that are currently for sale in order to comprehend your rivals. However, you shouldn’t assume that a neighbor’s list price accurately captures the home’s true worth.
While the Sales price is the figure that a buyer ends up paying for to purchase the property. Most people don’t take into account the terms that come along with the sales price. For instance, finance contingencies, inspection contingencies, rent back, concessions and repairs.
These terms may affect the final sales price. For example, I recently closed a sale with a buyer of mine and our offer was $50,000 less than the highest offer price. And the only reason why the sellers picked our offer was because of the terms, ours was more favorable. They felt that $50,000 was not worth the risk of picking another offer with less favorable terms. They chose our offer with the lower price, but with better terms and a higher likelihood of closing.
So if you see a home with a sales price that’s a little bit off, it could be due to the terms.
The difference is quite simple but the prices are very different. Don’t be fooled by a list price and the actual sales price.
If you are thinking of selling, sooner is better than later. With the appreciation at an all-time high, having a conversation about the market and what to expect in the next 12 months will be helpful with your planning.
The Bay Area real estate market is fast-moving. You need someone on your side that has a history here and is a trusted advisor.
I hope you learned something from this blog. If you have any further questions, please don’t hesitate to Gwen Chua at Intero Real Estate – Burlingame at firstname.lastname@example.org or 650-255-1511.