There are generally three ways to determine the value of a home: through a Comparative Market Analysis, a professional appraisal or an assessed valuation.
A Comparative Market Analysis, performed by your realtor can determine a reasonable listing price for your home. In preparing the Analysis, your realtor will consider a number of factors including the home's size, age, location, acreage and amenities. They will also research the price of other homes currently for sale that have recently sold or expired in your area. Then take all of these details into consideration before presenting you with the results of her work, and then take time to explain what this all means to YOU.

An appraiser (most frequently used by a lender) determines the market value of your home by also looking at similar properties in the area and comparing them with others that have recently sold and that are on the market. The appraiser is licensed and will charge a fee for their services. Lenders almost always require a professional appraisal upon which to base your loan amount.

Local governments also perform independent appraisals to determine your home's assessed value, available on public record, so that your property is taxed fairly.

When you compare your Agent's Comparative Market Analysis and the appraised values of your home they may not match. The "market price" as determined by the CMA will consider the supply and demand for homes in your area. The sale price can be much different from the appraised value, especially if the demand is great and there are multiple offers on the home.

Also, the real estate market is constantly changing. A home that was worth $150,000 last year may be worth considerably more this year and possibly more the year after. Meanwhile, all city and county property assessments are assigned an effective date, valid for that particular point in time. The more time that has passed since the appraisal, the greater the possibility for disparity in the values.

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