What does the term "list price" refer to in real estate?

The term "list price" in real estate specifically refers to the price at which a property is offered for sale. This is the price set by the seller or their agent when marketing the property to potential buyers. The list price is typically intended to attract buyers and reflect current market trends, although it may be negotiable depending on conditions such as demand or the seller's circumstances.

The concept of the list price is distinct from other pricing terms found in real estate. For instance, the final selling price is the amount that both the buyer and the seller agree upon after negotiations, which may differ from the initial list price. The minimum acceptable price indicates a threshold below which a seller will not entertain offers, which may or may not align with the list price. Lastly, the appraised value is an estimation provided by an appraiser, which assesses the property’s value based on multiple factors like condition and comparable sales but is not directly tied to the selling process itself. Each of these alternative definitions highlights different aspects of real estate transactions, which helps clarify why the term "list price" is specifically tied to the initial offer for sale.