When you are going to sell your home, you might want to determine how much the property is worth. It is important that you know the difference between the sale price and the list price at this point of the selling process. When you decided to work with an agent, you should make sure that you are talking about the same thing.
What Is the List Price?
The list price is the amount you want to sell the property. The price changes during listing if you want to raise or lower the price before the actual sale. To learn about the competition, you should check similar houses that are currently on the market.
You should not assume that the list price of your neighbor reflects the value of your home. You should also note that listing your home for $10 million doesn’t mean it is worth that much. The list price is a valuable marketing tool when you are pricing the property. You can compare the recent sales within your neighborhood and the surrounding area. Then you should also compare the list price with their sale prices.
What Is the Sale Price?
The sale price is the amount you managed to sell your home. If you want to determine the current value of your home, you can look for the average sale prices of similar properties within the area for the last six months. The sale price of most recent sold homes indicates how much buyers are willing to pay for similar properties. Often, the average sale price in a neighborhood is how an appraiser gets the estimated value of a property.
Some real estate professionals utilize the terms list price and selling price interchangeably. However, the latter refers to the amount you get from the buyer or the sale price. For instance, if you are going to sell your home for cash, Super Cash for Houses will offer to pay you the sale price in cash. That way you don’t need to deal with agents or other third parties who will be out to earn profits via commissions.
Market Value and Appraised Value
A certified appraiser provides the appraised value of your home in a certain timeframe. Lenders often require an appraisal as part of getting a loan. On the other hand, the market value is the product of a comparative market analysis of similar properties in the area.
In conclusion, the list price is the advertised price of the property in various real estate listings. The amount is a rough estimate of what the seller wants to get for the property. Often, the list price is higher than the actual value of the home. The sale price is the actual amount the buyer the buyer pays for the house. The appraised price allows you to know the true worth of your home. Often, the sale price is close to the appraised value of the property.