Homebuying and Selling: Pricing 101

ALEXANDRIA, VA, Dec 30, 2014—Whether you’re gearing up to buy or sell, it’s important to understand how home pricing works. In the following article, ToddHetherington, CEO of Century 21 New Millennium 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,” says Hetherington. 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,” Hetherington suggests.

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,” explains Hetherington.

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,” says Hetherington.

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.

For more information on real estate, please contact Century 21 New Millennium at move@c21nm.com, 800-382-1101, or Century 21 New Millennium.