Video: List Price vs. Sale Price in Real Estate

BERKELEY — Host, Sarah Rutan: When setting the price for a real estate property, it’s crucial to understand the difference between list price and sale price. Today we’re in Berkeley with Diamond Certified Expert Contributor Marc Guay of Marc Guay Team to learn more.

Diamond Certified Expert Contributor, Marc Guay: Today I’d like to talk about list price versus sales price and its relationship to time on the market. A list price’s job is to create activity. If it’s priced right, or just a little bit under what the market would bear, you’ll get the activity from the buyers because of the urgency that a list price causes. And the sale price could go up because you have multiple offers in that marketing period. Assuming, of course, that you’re on the market for at least seven to 14 days before you accept offers. Time on the market is reasonable with a proper list price. If you overprice the property, you tend to stay on the market two to three times as long and end up with one buyer who negotiates hard on what they would pay for your house. So, you end up with less money, oftentimes, then you would have got if you priced the property correctly the first time.

Host, Sarah Rutan: To learn more from local, top rated companies, visit our Diamond Certified Expert Reports at experts.diamondcertified.org.