What is the difference between listing price and appraised value?

Unlike the listing price, the home’s appraised value may not be what sellers are asking for their home. Lenders will only allow a loan amount based on how much the home is worth on the appraisal report. As you can imagine, it’s in the seller’s best interest to try to get the home appraised for a value that matches the selling price.

What is the difference between appraised value and sales price?

The two terms are not the same. Appraised value states what the home is worth, while sales price illustrates what buyers—or, at least one buyer—are willing to pay for this home, in this neighborhood, in this market. Appraised value is essentially the “true value” of the good, while the sales price is all about supply and demand.

What is appraised value?

Appraised value is a professional judgement of a property's worth, which may not correspond to its actual market value or selling price. Lenders rely on appraised values to underwrite mortgage terms such as computing loan-to-value (LTV).