The Difference Between List Price, Market Value, and Appraised Value: A comparison.

One of the most confusing parts of buying or selling a home is realizing that the same house can have three different values—and none of them are wrong.

List price, market value, and appraised value all serve different purposes. Understanding the difference between them can save you a lot of frustration (and a few hard conversations) during the process.

Before you read on, consider these two living rooms - they're directly next door to one another, 4beds 2 baths, 1.5 stories, & fully remodeled.

Which do you gravitate toward?

Which one would you pay more for?

List Price -1st Comparison

List price is a strategy, not a verdict.

It’s the price a seller chooses to bring the home to market, often based on:

• recent comparable sales

• current competition

• timing and demand

• the seller’s goals

A list price can be:

• intentionally aggressive

• conservatively positioned

• or somewhere in between

What it isn’t is a guarantee of what the home will sell for.

Market Value - 2nd Comparison

Market value is what a buyer is actually willing to pay—and what a seller is willing to accept—under current conditions. This is illustrated in the photos above from two listings I had back to back on my own street. I would guess your answers to the questions were the photo on the left both times. And the data would support that because the photo on the left sold for over asking in 5 days and the other sold for 10k under asking in more than 30.

Market Value is shaped in real time by:

• buyer demand

• inventory

• interest rates

• emotion and urgency

This is why two similar homes can sell for very different prices depending on when and how they hit the market.

Market value reveals itself through offers—not opinions and it is very important to factor in.

Appraised Value - Final Comparison

An appraisal is a lender’s risk assessment.

The appraiser looks backward, relying on closed sales and standardized adjustments to determine whether the price makes sense for financing. Their job isn’t to validate excitement or competition—it’s to protect the loan.

That’s why appraisals can feel conservative, especially in fast-moving or shifting markets.

Why This Matters

Problems arise when these three values are expected to be the same.

They rarely are.

Understanding their roles helps buyers AND sellers:

• avoid overreacting to list prices

• make confident offers rooted in reality

And it helps sellers:

• price with intention

• navigate feedback without panic

  
  

The Big Picture

Real estate pricing isn’t about being “right.” It’s about alignment—between strategy, reality, and financing.

When those pieces work together, deals move forward with far less stress.

If you’ve ever looked at a price and thought, “That doesn’t make sense,” you’re probably right. The important question is which value you’re reacting to—and why.

If this helped clarify things, that’s the goal. If you’re already working with an agent, they should always be your first call to talk through how this applies to your situation. And if you’re not yet represented, I’m always happy to help you dig deeper or think through next steps.

Blessings,