List Price

Filed Under:
Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center