How Do Real Estate Experts Determine Home Value?

By Jason Starr

With over 30 years of combined experience, we understand the finer nuances of selling your home. We know where the seller's largest loss of revenue is when selling and the 4 reasons why a home doesn't sell. Want to learn? Contact us knowing you'll receive no pressure and total confidentiality.

Knowing a home’s value is crucial when selling, and the market ultimately determines it. While a seller can set an asking price, the true value is revealed through offers received. Real estate professionals and appraisers use a variety of factors to estimate value, but in the end, the market always provides the clearest answer. Understanding how this process works can help sellers set realistic expectations and make informed decisions. Here’s everything you need to know:

How is home value determined? Real estate agents and appraisers use comparable properties to estimate a home’s worth. They analyze homes with similar characteristics—bedrooms, bathrooms, square footage, acreage, and condition—within the past six months of sales, provided there is enough data. The sale-to-list ratio, which compares the listing price to the final sale price, also plays a role.

Appraisers follow the same process but with a more detailed approach. If recent sales data is limited, they may extend the search further back. Agents, however, add a human factor to the equation, which can lead to varied estimates. It’s not uncommon for three different agents to provide three different price evaluations for the same home.

Supply and demand’s influence. Market conditions play a significant role in home values. Low inventory, as seen in the winter of 2025, creates a seller’s market, giving sellers an advantage. The principles of supply and demand always apply, further influencing pricing.

The market has the final say. Knowing how home values are assessed allows sellers to price their homes wisely and make confident decisions throughout the selling process. While factors like comparable sales, home condition, and market trends play a role, the market ultimately provides the final answer. If you have questions or need guidance, don’t hesitate to reach out. You can call me at 603-293-7227 or send me an email to StarrRealtyNH@gmail.com. I look forward to hearing from you.