Feb 25, 2010

What is the difference….

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What is the difference between list price, sales price and appraised value?

“The list price is simply what a seller is asking for their property.  In the current market, sellers are well aware of the need to negotiate.  Having a good real estate agent will help you gain knowledge about comparable properties so you can go in with a reasonable offer regardless of what the asking price is. ”

“The sales price is the amount that a property actually sold for.  An interesting thing to look at in any area is the comparison of list to sales price to get an idea of how much the market is negotiating.”

“The appraised value is a bit more involved.  All banks will require an appraisal but a cash buyer may opt to have an appraisal done as well.  To accomplish a valuation, an appraiser will look at the most recent sales and adjust each one for amenities and deficiencies.  In doing so, an appraiser establishes what a property’s worth should be when compared with the most recent market sales.”

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T. Dylan Jones

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