List Price, Sales Price, & Appraised Price – They’re Not All the Same

Selling a home comes with a big to-do list and a lot of emotion. Every home seller wishes to have a quick and easy sale, with minimal repairs, and a sale price that closely matches their list price. While that often happens in a seller’s market—don’t always count on it.

If you’re like most new home sellers, you may not be aware that list price and sale price are not one and the same. You’ll also find out that your home has an appraised price, which can be different from the two. So, what’s the difference between list price, sale price, and appraised price?

List Price

When you decide to sell your Houston area home, it’s a good idea to get in touch with a knowledgeable Realtor®. They’ll perform a comparative market analysis (CMA) on your home to help determine the list price, or asking price, for your home.

A CMA is a study of comparable properties that have sold in your area. Data from homes that are similar in size, condition, and age is compiled to determine the current market value of your home.

Sales Price

After a homebuyer falls in love with your home, they’ll present you with an offer. Depending on the current market and demand for homes, you may see a number that matches, or is slightly below your asking price. If you get real lucky—it may be higher.

In most cases, the offer goes through a negotiation process. Naturally, you’ll want to get the most money from your home, while the buyer wants the best deal. There are many factors that could reduce an offer amount, such as repairs, or if the buyer proposes a cash sale.

Appraised Price

When an offer is accepted, an appraisal will be ordered. The appraisal process is mostly for the lender, so they can be certain about the true market value of the home, and have confidence the buyer will pay the mortgage. This protects the bank and ensures that buyers aren’t overborrowing.

Are You Selling a Home in Houston or the Surrounding Areas?

If you’re thinking of selling a home in Houston, Cypress, Spring, or Jersey Village, I’d love to help! Call me at 713.818.7765 or contact me online so I can start a strategic marketing plan right away.

While you're here, you can sign up for a free Comparative Market Analysis (CMA) and I can determine the value of your current home.