List Price

AAA

DEFINITION of 'List Price'

1. The manufacturer's suggested retail price, determined by supply and demand, for consumer goods such as automobiles or electronics.


2. The initial asking price for a real estate property, such as a home, as determined by similar properties that have recently sold in the area. These comparison properties are known as comparables.


The list price can be thought of as the starting price for negotiations; it is not necessarily the price that the buyer will pay.

INVESTOPEDIA EXPLAINS 'List Price'

1. Products and product advertisements often include language such as "lists for $99; our price: $79." This means that the manufacturer expects the product to sell for $99, but the seller is willing to let it go below its list price (for $79 in this example). The list price is often included to make the customer feel as though he or she is getting a good deal.


2. Real estate properties include an asking price known as the list price. This dollar amount is included in the listing as the price that the seller would like to receive on the sale. If the list price, or asking price, is "firm," it means the seller is not willing to negotiate. Most times, however, the list price is set with the expectation that a potential buyer will offer less, and so the list price is preemptively set a bit higher than the seller actually expects. If a property is under high demand, the selling price can actually exceed the list price.

RELATED TERMS
  1. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource ...
  2. Appraisal

    A valuation of property (ie. real estate, a business, an antique) ...
  3. Real Estate

    Land plus anything permanently fixed to it, including buildings, ...
  4. Price Elasticity Of Demand

    A measure of the relationship between a change in the quantity ...
  5. Comparables

    A valuation technique in which a recently sold asset is used ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. Top Tips For First-Time Home Buyers
    Home & Auto

    Top Tips For First-Time Home Buyers

  2. Selling Your House? Avoid These Mistakes
    Home & Auto

    Selling Your House? Avoid These Mistakes

  3. 6 Tips For Selling Your Home Fast
    Home & Auto

    6 Tips For Selling Your Home Fast

  4. Top 10 Features Of A Profitable Rental ...
    Entrepreneurship

    Top 10 Features Of A Profitable Rental ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center