List Price

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.


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