Whether you’re gearing up to buy or sell, it’s important to understand how home pricing works. The following article takes us through four of the top real estate pricing terms.

The list price. The list price is a seller’s advertised price, or asking price, for a home. This price is a rough estimate of what the seller wants to complete a home sale. A seller can price high, low – which does not happen very often – or very close to what they hope to get. A good way to determine if the list price is a fair one is to look at the sales prices of similar homes that have recently sold in the area.

The sales price. The sales price is the actual amount a home sells for. This number is reached after the buyer and seller negotiate, and therefore, it can differ from the original listing price.

Appraised value. A certified appraiser who is trained to provide the estimated value of a home determines its appraised value. The appraised value is based on comparable sales, the condition of the property, and several other factors. It is rare that a home will sell for more than it’s appraised value, and so the home is typically appraised before a listing price is set.

Market value. Market value is the price the house will bring at a given point in time, once the buyer and seller establish a “meeting of the minds” on price.

How Can We Help You As a Bethesda Home Buyer or Seller?

We here at the Estridge Group have years of experience helping scores of Bethesda home buyers and sellers just like you.

And we would love to assist you as well by offering valuable insight on the current state of the housing market, sharing expert advice with you and offering you useful tool.

Contact us today to learn more!

Until next time,

Melinda