What is the difference between list price, market value and net proceeds? List price is the asking price. Market value is an estimate of value under stated market conditions. Net proceeds are the amount remaining after the deductions included in the calculation. None of these numbers guarantees when a home will sell.
This is educational information, not a valuation or a recommendation for a specific property.
What is list price?
List price is the amount at which a property is offered for sale. It is not a promise of the eventual sale price. A home selling above or below asking describes the relationship between two numbers; it does not, on its own, show whether the buyer overpaid or the seller achieved market value.
What is market value?
Market value is an opinion of what a property would sell for under the conditions of the valuation. It is not simply the amount an owner paid, owes or hopes to receive.
A comparable sale, often called a comp, is another transaction used as evidence in a valuation. Proximity alone does not make two properties equivalent. A San Francisco tenancy-in-common interest, an Oakland condominium and a Berkeley detached home have different characteristics.
What do active, pending and closed mean?
| Listing term | Meaning | Limitation |
|---|---|---|
| Active | A property is being offered for sale | The asking price is not a completed transaction |
| Pending | A property is under contract but has not closed | The transaction may not close on its expected terms |
| Closed | A sale has completed | The result reflects that property and that transaction's circumstances |
Listing systems may use additional status labels. An agent can explain the status of a particular listing.
Is an appraisal the same as an automated estimate?
An appraisal is a professional opinion of value for a stated purpose and effective date. An automated valuation model uses data and statistical methods. Neither term means a guaranteed sale price. A lender's appraisal and an agent's pricing recommendation also serve different purposes.
What are net proceeds and carrying costs?
Net proceeds are the funds remaining after the deductions specified in a seller's estimate or closing statement. Loan payoffs, transaction expenses and withholding can affect the amount received at closing; actual tax liability is a separate issue.
Carrying costs are the ongoing expenses of ownership, such as mortgage payments, property taxes, insurance and applicable HOA dues. A price reduction changes the asking price; it does not remove those ongoing obligations.
Why do local requirements appear in a pricing conversation?
Required reports and compliance work can involve costs, but they are separate from market value. Examples include EBMUD's private sewer lateral program, Berkeley's BESO requirements and San Francisco's 3R building-record report. Applicability and current requirements come from the responsible agency, not from a pricing estimate.
Professional boundary
There is no list price that guarantees a closing date or a particular net result. Westin's recommendation for your home belongs in a property-specific conversation. Legal, tax, permit, insurance and condition conclusions require the responsible agency or qualified professional.