Analyzing your home's worth can seem like a simple task. However, approaching this subject with caution can increase your chances of determining the value which suits the purpose of the analysis. Value can differ depending on the reason why the value is needed. The tax assessor, the insurance company, the mortgage company, and the owner all have different reasons for wanting to know a home's value. Knowing these reasons can help to understand the importance of which value to depend on.

Typically named CMA or comparable market analysis, this value is determined by analyzing a property against other similar properties. Realtors are trained to compare properties which are currently on the market, properties which are pending sale, properties which have sold, and sometimes even properties which were once on the market but didn't sell typically known as "expired". By analyzing a time period with these different classes of similar properties, a Realtor can show a property owner a range of value. However, it is important to note that similar property is not always in similar condition, location, or demand. Skilled Realtors, determine a property value by taking many aspects into consideration. Knowing these nuances can help a property owner determine which value is dependable to base a decision, and which value is only to impress an owner for a contract. The recommended range which a Realtor provides can also include a recommendation on what to add on for strategic pricing (The offering price) which is based on what the Realtor knows about the ever changing market conditions. A knowledgeable Realtor can many times obtain a higher price for an owner, because of their intimate knowledge of the marketplace. Different Realtors and real estate agents values can differ dramatically. However, examining the analysis can show an owner how skilled the agent is at developing the range of value to recommend.

Developing a value for insurance purposes is different than for developing a value for purposes of sale. An insurance agent will examine the materials used for construction of the home, the value of the land, the age of the home along with other factors to determine a value to insure. If replacement costs are being considered then many times the value determined is much higher or lower than a value developed for the sale of a property. Using a value determined for the insurance policy to place a property for sale could be a unwise decision.