When it comes to making money from real estate there are quite a few details and lingo, something first time sellers may find confusing. One such situation is the difference between list price, sales price and the appraised value of a property. Let’s break it down, shall we?
THE DIFFERENCE BETWEEN LIST AND SALE PRICES
The list price of your home is the price tag you set when you put it on the market. As a seller there several things that could cause you to adjust your list price. For example, if your listing has been on the market for months with no offers, then it may be time to make a price reduction.
The sales price is the amount the property sells for in the end after all is said and done. Sometimes the sale price and the list price are the same, but more often than not, they differ depending on a number of factors including competition, market conditions, and more.
WHAT ARE THE MOST IMPORTANT FACTORS WHEN SELLING YOUR HOME?
Apart from location, conditions and price are also crucial when it comes down to selling your home. The first step then is to focus on pricing the home right using market data and trends or calling in an appraiser. This will help evaluate your home more objectively so you can set the best, most realistic price. You should go through the home so you can repair any cosmetic defects and damage that may be present before you’re moving house for relocation. Ignoring much needed maintenance will only lower the value of your home on the market, especially if it is in need of any major repair jobs such as roofing or plumbing.
WHAT IS THE BEST TIME TO BUY?
Many buyers often prefer to make their move during the spring or summer, when the market heats up, so that’s one trend to keep that in mind. Families with kids will often be eager to buy during summer vacation, and move into before the new school year. However, there is a wide range of buyers on the market including Millennials searching for their first home and Baby Boomers looking to downsize so the best time ultimately comes down to when you’re ready.
WHAT IS THE DIFFERENCE BETWEEN MARKET VALUE AND APPRAISED VALUE?
The appraised value of your home is a certified appraiser’s opinion on the worth of your home at a specific moment. Lenders will require appraisals as part of the loan application process, with fees that may vary. A (CMA) comparative market analysis will help with making an informal estimate of the market value of your home, based on the sales of properties in the same range made by a real estate agent. An appraisal or a comparative market analysis will be the best way to make this work.
WHAT IS THE DIFFERENCE BETWEEN LIST PRICE, SALES PRICE AND APPRAISED VALUE?
The list price is the advertised seller price, a figure which is the rough estimate of what the seller wants to receive as money for the property after moving house. These prices can be high, low or fairly close to what they are hoping to get. The sales price is the amount of money a buyer pays for the property, while the appraisal value is the appraiser’s estimate of the price of your property done through a comparative analysis.