Whether you're preparing to buy or sell a home, it’s essential to determine its market value. Knowing what a home is worth helps you make informed decisions about asking prices, offers and overall strategy.

Defining Market Value

Market value is the price a home would sell for under normal conditions. It's the amount a willing buyer and a willing seller agree upon, without external pressures like divorce, job loss or financial hardship influencing the sale.

While some people view market value as an educated guess, accurate estimates are possible with the right data and analysis. A well-researched market value helps set realistic expectations and avoid surprises in the transaction process.

Here are several factors that influence the market value of homes:

Location

Location is one of the most important factors in determining a home's value. Proximity to schools, job centers, public transportation, parks and shopping can significantly raise a property's worth.

Local Real Estate Market

Real estate conditions shift constantly. For example, during the housing crisis, a surplus of homes pushed prices down. In a seller’s market, homes may sell quickly and above asking price. Market trends heavily influence what buyers are willing to pay.

External Features and Condition

Also known as curb appeal, a home’s exterior plays a key role in its value. Factors include lot size, landscaping, condition of siding or paint, architectural style, fencing, driveways and sidewalks.

Internal Features and Condition

Interior details can make or break a sale. Key features include the number and size of rooms, condition of appliances, construction quality, energy efficiency, cleanliness and any recent updates or renovations.

All of these elements contribute to the home's market value. However, one of the most reliable methods to estimate it is through the sales comparison method.

Using the Sales Comparison Method

This approach involves comparing your home to similar properties that have recently sold in the same or nearby neighborhoods. These homes should match in size, condition and style.

A professional appraiser typically uses at least three comparable properties (or "comps") to determine value. If you're estimating on your own, consider analyzing more to strengthen your results.

Adjustments are then made for differences—such as an extra bedroom, newer construction or a larger lot size. Each difference either adds or subtracts value compared to your property. Once adjustments are factored in, you'll have a solid price range to work with when setting your asking price or evaluating an offer.

Where to Find Comparable Sales Information

• Real estate agents: Agents often have access to recent sale data and can provide a comparative market analysis (CMA) to help you determine a competitive price.
• Online property databases: Real estate websites and listing platforms offer searchable sales histories by ZIP code, neighborhood or city.
• County assessor’s office: Local assessors may provide recent sale information or even printed lists upon request.
• Local newspapers: Some real estate or business sections publish quarterly sales data for different neighborhoods.

Getting Professional Help

If gathering and analyzing comps feels overwhelming, consider hiring a licensed appraiser. Appraisers have the tools and experience to deliver an objective valuation based on current market conditions.

While doing the research yourself is possible, hiring a professional can save time and provide peace of mind — especially in complex or competitive markets. Whether you go it alone or work with an expert, understanding market value gives you the confidence to make smart decisions as a buyer or seller.