What does the term 'list price' refer to?

The term 'list price' refers specifically to the price at which a property is initially offered for sale. It is the figure set by the seller and serves as a starting point for potential buyers. The list price is critical for attracting interest and initiating negotiations in the real estate market.

When a property is listed for sale, this price reflects the seller's expectations and market conditions. However, it does not account for any negotiations or agreements that may occur afterward, which can lead to adjustments in the final sale price. It's important to note that while the list price is a key factor in the selling process, actual market dynamics will often dictate the final sale outcome.

Other options refer to various aspects of property valuation or the negotiation process but do not accurately define 'list price.' For example, the final sale price after negotiations can be higher or lower than the list price, and the amount a buyer is willing to pay might differ from both the list price and actual selling price. Finally, the appraisal value of the property is determined through a formal assessment process and may not align with the list price at all.