Difference between Appraisal and Asking Price - Posted by Pat (NJ)

Posted by mike on November 30, 2000 at 13:00:33:

I would not tell her this but asking price could be what you sell a ‘home’ for, and apppraisal price is what you sell a ‘house’ for…LOL

I am sure tho that you know what I am getting at.

Difference between Appraisal and Asking Price - Posted by Pat (NJ)

Posted by Pat (NJ) on November 30, 2000 at 12:25:36:

I was talking to a seller and offered to buy her home for a percentage of the appraisal price. She wanted to know what was the difference between an “appraisal” price" and “asking price”. Does anyone have a way of explaining the difference?

If you don’t know the difference… - Posted by Ron (MD)

Posted by Ron (MD) on November 30, 2000 at 16:00:29:

Pat,

I don’t mean to be disrespectful, but you need to ask yourself if you should be making offers on properties without knowing the answer to the very basic question you asked. You should have at least an elementary knowledge of the business before you jump in.

Once you understand the elementary concept of appraised value vs asking price, you can move on to the next level – which is where you understand that neither asking price nor appraised value is very reliable. Owners can, obviously, be very wrong in their perceived value for their home. Also, appraisals are very subjective. You (or the seller) can easily find a very accommodating appraiser who will provide a low (or high) valuation, depending on who has ordered the appraisal.

Be very careful, Pat.

Ron Guy

Re: Difference between Appraisal and Asking Price - Posted by Rob FL

Posted by Rob FL on November 30, 2000 at 15:12:56:

“Aprraisal price” is the price that a state licensed appraiser certifies that the house is worth.

“Asking price” is the price that the seller wants to sell the house for. It also might be what the seller or their Realtor estimates the house is worth. This price might be much higher or much lower than the appraisal price.