Definition
Price-to-list ratio compares actual sale price to asking price. Ratios above 100% mean properties sold above asking (seller's market). Below 100% means discounts (buyer's market). It directly reflects market conditions.
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Price-to-list ratio is calculated by dividing the sale price by the list price and multiplying by 100. Ratios consistently above 100% in a market indicate strong demand, allowing sellers to negotiate above asking price. Ratios consistently below 100% indicate weaker demand requiring buyer concessions. Average price-to-list ratios directly reflect market conditions—strong seller's markets show ratios of 105-110%+ while weak buyer's markets show ratios of 90-95%.
Pro Tip
Monitor price-to-list ratios. Above 100% indicates under-pricing generates multiple offers. Below 100% suggests prices need reduction.
Example
In a seller's market, homes list at $425,000 and sell for $445,000, creating a 104.7% price-to-list ratio. In a buyer's market, $425,000 list prices sell for $405,000, creating a 95.3% ratio.