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The list price. The list price is a seller's advertised price, or asking price, for a home. “This price is a rough estimate of what the seller wants to complete a home sale,” says Jill. A seller can price high, low – which does not happen very often – or very close to what they hope to get.
“A good way to determine if the list price is a fair one is to look at the sales prices of similar homes that have recently sold in the area,” Jill suggests.
The sales price. The sales price is the actual amount a home sells for. “This number is reached after the buyer and seller negotiate, and therefore, it can differ from the original listing price,” explains Jill.
Appraised value. A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors. “It is rare that a home will appraise for more than it's agreed upon purchase price, when the appraisal is for the purchase,” says Jill, "so, it's important to work with a Realtor to review comparables together to determine a fair list price and a realistic purchase price."
Market value. Market value is the price the house will bring at a given point in time, once the buyer and seller establish a “meeting of the minds” on price.
For additional information on homebuying or selling, please contact Jill Valentine at jillvalentine@century21award.com, (760) 485-0989, or jillvalentinehomes.com
For more information on real estate, please contact CENTURY 21 Award at info@century21award.com, (800) 293-1657, or CENTURY 21 Award.
