Saturday, May 5, 2018

The difference between a real estate list price and selling price

Real estate consumers and professionals often use the terms selling price and list price interchangeably yet both terms necessarily do not mean the same thing. Often time, first time sellers or buyers may find the terms confusing. Let’s break it down together:

List price

This is the price value of your house when you put it up on the market for sale or rent. This price can change during the listing period should you decide has the seller to lower or increase the price before it sells. For example, if your property has been on the market for months with no offers, then you may decide to reduce your listing price or if a mall is built close to your property; it will appreciate the value hence resulting in you as the seller to increase the price of your listing. Listing price can be affected by a number of factors like offers from buyers, time spent by the property on the market, competition in the environment, economic conditions of the real estate market and much more.

It is also referred to as the asking price because it is the amount the seller asks for the house. Sellers often list their properties on reliable property agency, social media, flyers and much more

Sale Price

This is the price your house sells for at the final sale price. The final sale price of similar comparable properties in your neighbourhood that were sold within the last six months is an indication of your home’s current value. Sales price is the price agreed upon between the seller and buyer.It is also referred to as the selling price. It may be higher, lower, or the same as the initial list price which is dependent on what happens during the offer and negotiating stage.

Is price the driving factor in selling a property, and can price alone beat all objections a buyer has about a property?Marketing is a function of price. Real estate agents and advertisement can help bring potential buyers to the property and attract their interest; however, in the end, the home has to be within a buyer’s budget. Price combined with an effective advertisement is the largest motivator to get a home sold in any market.

Pricing your home correctly is very important. Ensure that your home is getting the exposure it deserves through online listings provider. Also, you can compare the price of properties in your area as a seller and you can hire an agent to objectively evaluate your home’s worth. Do you think the price is the only reason that homes sell? Kindly share your opinion in the comments section below.

Source: Damilola Dimeji-Ajayi  - To Let 

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