List Price: What it is and how to determine Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. SHARE: On This Page
Adobe Stock October 03, 2022 Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Listing price is a term that refers to the advertised cost to buy your home once you . Depending on the current real estate market conditions in your area, your listing price may or may not reflect your final sales price, as we’ll explore in this article. What is a listing price
Listing price, aka list price, is the price at which you put your home on the market for sale. In other words, it is the advertised price for your home. Typically, the list with the help of a real estate agent or realtor and is based on the and other considerations related to the current real estate climate. The “listing” part of the term is a reference to your home being listed in real estate ads and on (MLS). The list price is often merely a starting point for negotiation and is not necessarily the final amount that the home will sell for. However, it can have a considerable influence on the final sale price. How to determine a good listing price to sell your home
The process of establishing a good list price is important because a home that’s priced well is likely to attract more prospective buyers and sell quickly. Determining a good list price is typically based on a variety of important considerations, including your home’s location, the final sale price of comparable homes in your area and also the current market conditions. Another consideration that factors into establishing a list price is the condition of your home. A , for instance, would not likely be listed for as much as a property that is considered . If you invested in upgrades or renovations, that will also factor into the list price for a home. Not all as others when it comes to calculating list price. Spending $60,000 on a doesn’t mean you can automatically increase your home’s list price by $60,000, for example. Before investing in renovations, it may be best to consult with a licensed real estate professional to determine which changes and upgrades translate into the most added value when pricing a home. , for instance, offers a 147 percent return on investment, according to the from the National Association of Realtors, while a offers a 71 percent return. Even within these parameters, the quality and type of materials used may be more or less relevant to the overall impact to list price. If installing an expensive marble doesn’t add significant value compared to a solid surface counter, for example, you might get the most value in using a more moderate material rather than a high-end one. Listing vs selling price
While the list price is a predetermined starting point for putting your home on the market, the actual selling price may vary quite a bit, depending on how the market is doing and at what price you originally listed the home. The selling price is the amount you ultimately agree to sell your house for after negotiating with a prospective buyer. It’s what will be listed on the purchase and sales agreement you sign with the buyer, and on the issued before you finalize the transaction. To get a ballpark figure of what the final sales price for your home might be, you can research what other in recent months. You can also ask your real estate agent to prepare a , which lists all the closing costs associated with a sale — including the repayment of your mortgage, if any — and subtracts them from your home’s price tag. This will give you a sense of the actual amount you’ll net on the home sale. Ultimately, the list price strategy targets a number as close as possible to what you hope to get for a selling price. If your list price is too high, your home may not sell in a timely manner, which costs you more in the long run. If you list too low, you may not get a selling price that represents the home’s true market value. In a , many homes may sell below the listing price because inventory is higher or there is less demand in an area. In a seller’s market, an owner may list a home at a higher price point and still end up with a selling price above the initial list price. If a home’s list price is not , the owner may choose to re-list the property at a lower price. While the list price is set at the discretion of the owner, the selling price is fully negotiable and will be decided on between the buyer and seller. Find a trusted real estate agent to help
Because of the role list price plays in how quickly a home sells, and in determining the final selling point, having a knowledgeable expert guide you in the process of setting a list price is essential. A who knows the local community and understands the current market dynamics can be an invaluable part of determining the right list price for your real estate. SHARE: Mia Taylor is a contributor to Bankrate and an award-winning journalist who has two decades of experience and worked as a staff reporter or contributor for some of the nation's leading newspapers and websites including The Atlanta Journal-Constitution, the San Diego Union-Tribune, TheStreet, MSN and Credit.com. Troy Segal is Bankrate's Senior Homeownership Editor, focusing on everything from upkeep and maintenance to building equity and enhancing value. Related Articles