What Does the List Price to Sales Price Ratio Mean? - HAR.com (2024)

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What Does the List Price to Sales Price Ratio Mean? - HAR.com (1)

In real estate when studying a Comparative Market Analysis, there is a column of information called the List Price to Sales Price Ratio (LP/SP). Of course this is somewhat self-explanatory yet knowing the significance of this little ratio can mean a lot to a potential Seller or Buyer. This little bit of information can make a big difference in a real estate negotiation.

The bottom line iswhat the Listing Price was compared to what the home Sold for. The higher the ratio shows a strong market with properties being priced correctly to what buyers will purchasethem for. As you can see in the far right column above, the ratios are very high with some being over meaning buyers paid more than the list price.

Here in The Woodlands and in the greater Houston areas, our market is most definitely a Seller's Market. There are less Active homes on the market with many, many more sales! The days on the market has shrunk considerably as well!

So why is this important to Seller's and to Buyer's? First of all, it helps determine what price to list a home and for the buyer, it helps determine the type of offer to put in. In this type of market, going in for a low offer will most likely not get you into a contract.

Buyer's in this market are being advised to go in strong, have all of their financing ready and be prepared to close as quickly as possible. There is no time to waste if you need to get into a new home. Having a plan with your agent is essential prior to going out to view homes.

It is a tough market but not an impossible one! Knowing information such as the List Price to Sales Price ratio can truly help you make informed decisions in real estate. Hire yourself a competent real estate agent who knows how to negotiate on your behalf.

Call us at CHEVAUX Group and we will assist you through every step of the real estate process. We love what we do! We are anxious to partner with you!

What Does the List Price to Sales Price Ratio Mean? - HAR.com (2)

"Have you fully lived today?"

Paula L. McDonald ~ REALTOR®

Broker ~ The Woodlands, Texas

936-203-0279 Direct

Selling The Woodlands real estate and surrounding areas!

Paula@ChevauxGroup.com

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What Does the List Price to Sales Price Ratio Mean? - HAR.com (2024)

FAQs

What Does the List Price to Sales Price Ratio Mean? - HAR.com? ›

The bottom line is what the Listing Price was compared to what the home Sold for. The higher the ratio shows a strong market with properties being priced correctly to what buyers will purchase them for.

What is list price to sales price ratio? ›

You can determine the ratio by dividing the final sale price by the last list price and multiplying that number by 100 to express the ratio as a percentage.

What does sale-to-list price mean? ›

The sale-to-list ratio is the final sale price (what a buyer pays for the home) divided by the last list price expressed as a percentage. If it's above 100%, the home sold for more than the list price. If it's less than 100%, the home sold for less than the list price.

What is the difference between selling price and list price? ›

Listing Price Vs. Selling Price — What's the difference? Simply put, the listing price is the amount the seller is asking from a buyer to purchase their business. The selling price is the figure the seller agrees to pay to buy the business.

What is the selling list price? ›

The list price, in the real estate world, is the suggested gross sale price of real estate property when it is put on the market. In other words, it's the seller's asking price.

What is a good peg ratio? ›

In general, a good PEG ratio has a value lower than 1.0. PEG ratios greater than 1.0 are generally considered unfavorable, suggesting a stock is overvalued.

What is the relationship between list price and selling price? ›

Marked price also known as the list price is the price that a seller spells out to the purchaser while selling price is the price that the seller actually receives from the buyer after a bargain or making a deal. In general, the selling price is lower than the marked price.

How much higher than list price should I offer? ›

Many experts recommend offering at the very least between 1-3% more than the home's asking price if you're bidding against other offers. That means if you're looking at a home on sale for $250,000, you should consider offering at the very least $252,500.

What does list price cost mean? ›

: the retail price of an item as published in a catalog, price list, or advertisem*nt.

Do homes usually sell for list price? ›

In a buyer's market, many homes may sell below the listing price because inventory is higher or there is less demand in an area. In a seller's market, an owner may list a home at a higher price point and still end up with a selling price above the initial list price.

What is an example of a list price? ›

In short, list price is the starting point for negotiation in business. It's the full price that a product or service is advertised for, without any discounts or promotions applied. For example, if a company is selling a product for $100 with a 20% discount, the list price would be $125.

How does list price work? ›

List pricing refers to the price a manufacturer or supplier sets for their products or services without negotiations or discounts. List pricing is a starting point for price negotiations and can provide a standard price for customers to compare suppliers.

How do you calculate list price? ›

Calculate List Price from Discount and Sale Price. The list price is the sale price divided by the difference of 1 minus the result of discount divided by 100.

Is list price fair market value? ›

Market value refers to the price that a property would reasonably sell for in the current market. It is not the same as the list price, which is the price that the seller would like to receive for the property.

What is the sales ratio in real estate? ›

Sales Ratio (SR) – the ratio of assessed value to market value found from a property that has sold; ratio equals prior year (equalized) assessed value (AV or EAV) divided by the current year sales price (SP). Sales Ratio Study – a analysis of the percentage relationship of assessed value to market value.

Can you sell above list price? ›

Yes, you can. But it's easier in a seller's market than in a buyer's market. And to sell your house above market value, you'll need a strong strategy that includes the right listing price, staging it to highlight the best features, and working with a great Realtor.

What is the NVDA price-to-sales ratio? ›

According to NVIDIA's latest financial reports and stock price the company's current price-to-sales ratio (TTM) is 34.7457. At the end of 2024 the company had a P/S ratio of 26.8.

What does high pb ratio mean? ›

A high P/B ratio and a low ROE may suggest that a company is overvalued. It's crucial to evaluate the P/B ratio and ROE together as part of a broader analysis of stocks. These metrics, while important, should be considered alongside other factors to make well-rounded investment decisions.

What is the difference between PS and PE ratio? ›

While the P/E ratio compares a company's stock price to its annual earnings (profit), the P/S ratio compares its stock price to its annual revenue (sales).

What is the formula for pricing ratio? ›

The ratio pricing method is used to calculate a base selling price for a menu item that ensures all food and non food expenses are covered while still meeting the desired profit goals. A ratio is calculated using the sum of non food costs and profit and then dividing that amount by the cost of food.

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