What Are List Price, Sales Price, Market Value and Appraised Value?

In a perfect world, all four of these would be the same. They all represent one or more person(s)'s opinion of the true value of a property.

The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. Generally, homeowners will ask a qualified Realtor to help them select their list price, particularly if the property is listed for sale with a Realtor. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area.

The sales price is the amount of money a buyer has paid for a property. The sales price can be affected by the seller's need to sell and other factors. It is generally the closest thing to true value, since there is at least one person who is willing to pay this amount for the property.

The appraised value is a certified appraiser's estimate of the worth of a property. It is based on comparable sales, the condition of the property and numerous other factors. The appraiser's goal is to establish the likely sales price that a group of buyers would be willing to pay for the property, within a reasonable amount of time.
Market value is the opinion of a qualified professional (usually a Realtor) as to the most likely price that a property will bring on the open market, based on current conditions. The market value of a property can change, based on its condition, current trends in the area, the perception of the neighborhood, and even interest rates.

For a Private Consultation concerning the value of your home or a home you are considering purchasing, email us.