House Price Sales Information
Real estate agents, appraisers, assessors and lenders are all involved in determining the value of a home. Each defines it differently. In order to avoid confusion, buyers and sellers should understand the different types of home prices and what each one means.
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Market Price
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According to online lender Lending Tree, market price represents the amount that a home will sell for in a market where there is a balance of buyers and homes available for sale. Market price can be determined by identifying two or three similar homes and averaging the prices that they sold for.
Assessed Price
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Property tax assessors work for government agencies. According to the United States Department of Labor, assessors establish a home's price for tax purposes only. Assessors don't always see the houses that they are assessing, as they may use computer systems to determine value.
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Appraised Price
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Most banks and mortgage brokers hire an appraiser to establish a home's value before approving a loan for a buyer. This assures the bank that it is not lending more than the home is worth. According to Fannie Mae, appraisers must look at a home's condition, as well as market conditions, in order to determine appraised value.
Sales Price
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Sales price is the amount a house sells for. Sales price may be lower than market price if the home is in poor condition or if the seller is eager to move. It may be higher than market value if multiple buyers are competing to purchase the home. A home's sales price may differ dramatically from its assessed or appraised value.
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