Gary asked: What is the difference between tax appraised value and market value of a home? What does that have to do with my list price or purchase price?
Appraised value is the tax value that the County, City and School taxes are based upon. An inspection of the home is not necessary. Taxes can be higher or lower than the fair market value.
Fair market value is the price a buyer will pay and a seller is willing to accept. This amount can change with the real estate market. An appraisal or a market analysis will determine the fair market value of a property.
Relevance to list price or purchase price? The amount a seller needs to pay off the loan or the amount a buyer is able to afford does not affect the value. It is what it is.
Additional details are in Realtor Rochelle's eNewsletter, January and February 2010 edition. Contact me for a copy.