Sometimes, I sit down with people who want to sell their Laurel, Md. real estate and ask them how much they think their home should sell for. On numerous occassions, the potential seller will start to state the list price of homes around them.
The list price is not the sales price.
The sales price is actually what the home sold for. A home may be listed at a sales price of $350K, but it sells for $290K. The difference between the list price and the sales price is referred to as the sale price to list price ratio. In the preceeding example, one would say the sales price of $290K is 83% of list price $350K. The seller sold his home at 17% below what he was listed at.
Currently, in Laurel Maryland zip code 20707 the Average Sale Price as a percentage of Average List Price is at 87%. That means if you list your house at $300K, your final sale (sold) price would be approxiametly $261K. In todays information age, buyers are usually aware of these numbers.