Your list price is the amount entered into the multiple listing service where brokers and agents enter their properties for sale and cooperation with other agents. It's the asking or offered price for a home. This value is derived by the agent or broker comparing your home to the data in the MLS (Multiple Listing Service)of like properties in your immediate neighborhood. Although the data in the MLS is, hopefully, factual; the agent's or broker's opinion of value may be considered more "subjective" since they will usually view the home prior to setting a final asking price.

Your sales price is the actual price at which the home sold. This is the data reported to the county or city taxing authorities and the price is usually recorded in the Public Records of the county where the property is located.

If there are exceptional qualities to a home, or it is located within a community with many amenities, the appraised value may be more than the selling or listing price.

The appraiser's opinion is considered "objective" and they are serving as a disinterested third party. An appraisal report is more in-depth in terms of investigated information which will include a search of the MLS, public records, and/or an appraiser's own database.

The appraiser will be hired by a lending institution who will carefully review the report and conclude whether the appraiser's assigned value is accurate and fits the Uniform Standards of Professional Appraisal Practice. The final value assigned to the property will dictate how much the Lender is willing to extend for the mortgage.

However, there is a common misunderstanding when an appraised value exceeds the sales price that a Buyer may borrow more money for the loan. That is actually incorrect. The Buyer may only borrow against the lesser of either the sales price or appraised value when purchasing.

The list price is the price that a seller is looking to receive for a property. This is the asking price for a house on the market.

The sales price is the price that is accepted between the buyer and the seller.

The appraised value is a independent opinion of value. The appraiser is the eyes of the bank. They have no financial gain in the sale of the property. The appraisal will measure the value of the house compared to other recent sales of similar properties.