The difference between List Price, Sales Price and Appraisal Value is very easy to explain, but not understood completely by some home buyers.
List Price - The list price is the amount entered into the MLS by the listing broker and agent. It is the asking price or offered price for a home for sale. Usually the list price is determined by comparing like properties that have sold in the vicinity. Many times the seller needs to sell the home for an amount equal to or greater than the outstanding mortgage on their home. This is not the best way to price a home especially during times when home values are deflated like the present market.
Sales Price - The sales price is the actual price at which the home sold. This is the price that is recorded with the city and county taxing authorities and is recorded in the Public records of the county where the property is located.
Appraised Value - The appraised value is the amount that an appraiser has assigned to the home after conducting a search of comparable sold properties. There is some objectivity when assigning a value to the home based on various factors that are unique to each neighborhood. The appraised value is used primarily when lenders are determining how much money they should loan to the borrower when they are purchasing the home.