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What is the difference between list price, sales price and appraised value?
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List Price: This is the price the seller advertises his property for sale. It is an invitation to offer on the property. The seller does not have to sell even though he is inviting offers. Not even full price offers need to be accepted by the seller.
Sales Price: This is the price that was agreed on during the sales negotiations between seller and buyer. The sales price is the best estimated of the market value of that specific property. After all it is what a qualified buyer is willing to pay for the property and what the current owner is willing to part with the property for.
Appraised value: An appraisal ordered by the buyer’s lender will determine the “objective” value of the property for lending purposes. A lender will want to ensure that the property is worth what the buyer is paying for it and more importantly that the property is worthy as collateral against the loan the lender is extending to the buyer. |
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