<p>The listed price tells you something about the expectations of the vendor and their estate agent. It's a leading indicator, hinting at where the market may be going next.</p>

<p>The transaction price tells you something about the actual market during the period of the sale, in the period between the property going on the market and the date of exchange. It represents a real meeting of supply and demand - it is a market price. It only becomes available in the weeks or months after completion of the transaction, so the market will already have changed by the time one can get all the data.</p>

CC BY-SA 3.0
2015-12-02T19:41:23.977Z
2015-12-02T19:43:43.667Z
2015-12-02T19:43:43.667Z
410 gone
<p>A house may be listed at a certain price (e.g. £200,000), but sells for a different price (e.g. £210,000).</p>

<p>In terms of economic theory, how does the transaction price tell us more information than the listed price?</p>

<p>Most papers use listed price because of data availability, and then state that it is more preferable to have transaction price. Why is this the case? </p>

CC BY-SA 3.0
2015-12-02T23:22:27.803Z
https://www.princeton.edu/ceps/workingpapers/214ashenfelter.pdf This paper looks at list price and sales rates. It is not an answer to your question but is very relevant. Particularly the introduction which covers what @EnergyNumbers is saying.
Jamzy
<housing><property>
Listed property price v.s. transaction price
Kelly
# Listed property price v.s. transaction price

(Asked by: username_0 on 2015-12-02)

A house may be listed at a certain price (e.g. £200,000), but sells for a different price (e.g. £210,000).

In terms of economic theory, how does the transaction price tell us more information than the listed price?

Most papers use listed price because of data availability, and then state that it is more preferable to have transaction price. Why is this the case?

**Tags:** housing, property

> **Comments:**
> **username_1**: https://www.princeton.edu/ceps/workingpapers/214ashenfelter.pdf This paper looks at list price and sales rates. It is not an answer to your question but is very relevant. Particularly the introduction which covers what @EnergyNumbers is saying.  

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## 1 answers

### Answer by username_2 on 2015-12-02. Score: 4 | Accepted answer

The listed price tells you something about the expectations of the vendor and their estate agent. It's a leading indicator, hinting at where the market may be going next.

The transaction price tells you something about the actual market during the period of the sale, in the period between the property going on the market and the date of exchange. It represents a real meeting of supply and demand - it is a market price. It only becomes available in the weeks or months after completion of the transaction, so the market will already have changed by the time one can get all the data.


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