Intro: Deciding the sale price for your home can be confusing. After all, you hear terms like the appraisal price, the home sale price and the current market value of my home. In this installment of "Ask the Realtor," Boise real estate agent, Jace Stolfo clarifies the difference between these terms.
- Ask the Realtor: What you and your spouse should talk about if you can't decide on a home to buy
Ask the Realtor:
What's the difference between market value, sale price and the appraised price of my home? Why is there such a difference in some cases?
I think you could argue in theory that these three different terms would all mean the same thing or should arrive at the same price. However, that's not really the case, and I think you can define each of these terms separately.
What Do You Mean When You Say "Home Market Value?"
When you're determining a home's market value a home is going to be worth generally in a range of values. In other words, there's not one specific price that the market's going to bear. Some buyers are willing to pay a little more for one type of property while other buyers in the market are only willing to pay something a little bit less. There's a range.
So that's different than sales price, because that is what one buyer in the buyer pool is willing to pay. It's a specific point in that range.
And What About My Home Appraisal Estimate?
The appraised price/ appraised value of a home that would be done by a professional home appraiser. And what you need to know about appraisals is that's just one opinion of value. It's a professional opinion of value. Just know that, the appraiser may be accurate for what most buyers are willing to pay for that property or they could be high or they could be low in his/ her estimate. It's just one person's opinion of value.
Learn More About Sale Price, Appraised Price and Market Value Next Week
Now that you've had a chance to read the difference between the terms real estate market value, home sale price and home appraisal value, you'll want to bookmark this and come back next week. Jace will talk about how you can use this knowledge to better help you sell your home. He'll also walk you through what you can expect your Realtor to do for you as he/ she looks at these three real estate values to help you come up with the best selling price for your home. That column will be published on April 29, 2014.
**As always, this information is meant to be for general information only. If you need more specific information about how to sell your piece of Boise real estate (or a Realtor in your home area if you live outside Idaho), then contact your local Realtor for more information.
Jace Stolfo is a real estate agent and associate broker in Boise, Idaho. He owns and operates Boise Real Estate Plus, LLC at Keller Williams Realty Boise. Since he began his career, Jace has has been named one of the top real estate agents in the City of Trees and the Treasure Valley. His awards have included being named a Platinum Level Top Producer. His areas of expertise include the Boise real estate market, short sales and REOs. For more information, click here.