List vs Sale...What's the Difference?

As a real estate professional (For more on my background click here), I am always interested in giving good information to my clients. I have found over the years that many are confused with the terms: "List" and "Sale". I would like to give an explanation to these two terms here. Let's start with Sale, this is the actual price your home will sell for in the market. It is the price at which a reasonable buyer will pay for your home. List means the price you as a property owner would like to get! I must be clear that the terms are not the same, although the List price and Sale price can often be the same number (Not always). In a tight market like the one we are in currently (As of November 2007), the List price and Sale price can be significantly different. For example there was a seller in my market that started to sell his home for $725,000 11 months ago. He is still trying to sell that home, but he has come down to: $579,000 currently, and the home has not sold yet! These are examples of List prices (We have not seen the Sales price since he has not sold it!). What amazes me, and maybe I'm the only one that experiences this, is property owners often mistake List Price for Sales Price. What do I mean by this? Sellers often see what Professional Real Estate Agents are selling property for and they think that is what homes are selling for. This type of think is flawed given that the sales prices can be as much as $30,000 or more less than the List prices (This is very common in a tight market.) This is where a professional agent can advise and be of service for pricing your home! For more click here.
So there you have it! Make better decisions, with the knowledge that List does not equal Sale (Although in some cases they are the same number!). This will help you in pricing you home! Good Luck!