How can I find out what my house is worth?

Traditionally, people turn to two methods to determine the value of their homes: appraisals and something called a comparative-market analysis. Appraisals vary in cost depending on the price of the home, but average about $300 for a $250,000 house. Appraisers review numerous factors including recent sales of similar properties, location, square footage and construction quality.

An appraisal is a professional “estimate of a property’s monetary value on the open market; an estimate of a property’s type and condition, its utility for a given purpose or its highest and best use,” according to Charles O. Stapleton III, Thomas Moran and Martha R. Williams, authors of “California Real Estate Principles,” 3rd Edition (Dearborn Financial Publishing Inc., Chicago, 1994) .

Comparative-market analysis is an informal estimate of market value performed by a real estate agent or broker. It is based on like sales and offers a range of values including probable market value. Agents will provide an analysis at no charge in hopes of getting a home listing.