The five numbers, and what each is for
Assessed value
Set by your municipality for tax purposes. It reflects assessment practice and equalization rates, not what a buyer would pay. Useful for taxes; not for pricing.
Automated estimate
Zillow and similar tools. Fine as a rough orientation, unreliable for older or unusual homes, and blind to interior condition entirely.
Broker's price opinion
A licensed agent's estimate of likely sale price based on recent comparables. Usually free, genuinely useful, and the right starting point for most sellers.
Appraisal
A licensed appraiser's formal opinion. Costs a few hundred dollars. What you want for a divorce, an estate, or any dispute.
Cash offer
What a specific buyer will pay today, as-is, with no financing contingency. Not a valuation. A commitment.
Why the cash offer is lower, and by how much
A direct offer starts from what the property would be worth fully repaired, then subtracts the cost of getting it there, the cost of holding it during that work, the transaction costs on both ends, and a margin for risk. On a home needing significant work, those deductions are substantial. On a home needing little, they are smaller, which is precisely why cash offers are least competitive on well-maintained houses.
If a buyer will not walk you through those numbers for your specific property, you are not being underwritten, you are being pitched.
How to get a number you can trust
- Ask a local licensed agent for a broker's price opinion with the comparable sales attached
- Look at what actually sold nearby in the last six months, not what is listed
- Adjust honestly for condition, especially roof, mechanicals, kitchen and baths
- Get an appraisal if the number will be used in a legal proceeding
- Treat any single source, including us, as one input rather than the answer