What does the term "list price" refer to?

The term "list price" specifically refers to the price at which a property is listed for sale by the seller. This price is often set by the seller in collaboration with their real estate agent, taking into account factors such as the property's market value, comparable sales, and current market conditions. The list price serves as an initial point for negotiations between the seller and potential buyers.

Understanding this concept is crucial for both buyers and sellers in the real estate market, as the list price can influence buyer interest and the speed of a property’s sale. While the estimated market value might impact the setting of the list price, the two terms are not synonymous. The price in a sale contract is typically the result of negotiations after offers are made and accepted, and the bid amount at an auction pertains to a completely different selling method.