The English dictionary definition of the term listed price is the cost of an item that is on display in a catalog, price list, or advertisement before any discount. In the real estate industry the list price refers to the owner’s listing or asking price. Â
When considering a list price there are many aspects to consider. Price discounts, pricing psychology, and demand can all sway the list price.
Listed Price Example
In real estate, listing prices do not follow a standard based on land price and building costs. Real estate listings rely on many different factors including age, architecture and location. A lot of houses built in a new subdivision will have consistent prices as new homes.
Listed Price vs Selling Price
A selling price is the total cost paid for the item and may differ from listed prices due to demand or a discount. A realtor may set a low list price to gain more potential buyers causing a bid war and altering the selling price.
Listed Price vs Net Price
When a wholesaler buys a large quantity the manufacturer offers a discount per unit. The net price is the cost to the wholesaler per unit.
Psychology of a Listing Price In Real Estate
The tricks of listing a precise price has roots in consumer psychology. A thought out list price has the ability to attract and help sell to potential buyers.
Zero in the List Price
A large tail of zeros on a list price can tell a possible buyer that a discount has been applied. Zeros in a list price also gives the buyer a ballpark estimate.
Using Four and Seven in the List Price
Pricing using fours and sevens is meant to portray a less negotiable price point to the buyer. The price is also unique allowing the seller to stand out from a competitor.
The $19.99 Price Illusion
Using 999 or 900 at the end of a list price makes the price look lower and is used in almost all consumer pricing.
The Number 8 in a List PriceÂ
In Chinese numerology the number 8 means wealth and is said to be very lucky for its pronunciation. In 2016 a Chinese developer spent $88,888,888 for a building in Australia.
Frequently Asked Questions about Listed Price
What does listed price mean?
Listed price is the price that is displayed by the seller and may differ from the actual selling price.
What is another name for list price?
Other names for list price are the headline price, published price or the asking price.
Is list price the same as cost price?
The cost price is the actual selling price. It differs from the listed price because it is the total amount spent during the transaction.
What determines the listed price?
The listed price is determined by the volume discount of a product, by its selling features, buy its suggested retail price or profit margin.
What is the formula of listed price?
The listed price is calculated by subtracting the discount price from the original price. LISTED (SALES) PRICE (S) = ORIGINAL PRICE (P) – DISCOUNT PRICE (PD)
