What is a "listing price" in real estate?

A "listing price" in real estate refers to the price at which a property is advertised for sale by the seller. This figure is crucial as it represents the seller's expectations and is the initial price that potential buyers will see when searching for properties. Setting the listing price is a strategic decision that can influence the speed of the sale and the final selling price, as it needs to be competitive enough to attract buyers while also reflecting the property's value.

In contrast, the price at which a property is sold at auction refers specifically to auction sales, which is a different context. The minimum offer a seller will accept is more about negotiation tactics and can be fluid rather than a fixed listing price. The average market price for similar properties, while it may inform the listing price, does not directly represent what the property is being listed for at any given time. Thus, the correct understanding of "listing price" focuses on how the property is presented to potential buyers in the market.