Sale Price vs. Appraised (or Market) Value
You may not know the square footage of your living room, but you know it’s the perfect place for your holiday tree. You may not care about parking in your driveway and instead decide to install a fire pit there for entertaining on cold nights.
People tend to view their homes emotionally, and that can become quickly apparent when they decide to sell. They may price the home too high, causing it to languish on the market. Or they may set the asking price too low.
For a sale to proceed, there must be a “meeting of the minds,” notes the Houston Chronicle. “The seller, the buyer and the lender must find an agreeable value to attach to a property.” According to the paper, this happens when the sale price and the appraised value of the home are as close to each other as possible.