A:

A home is worth what a willing & able (or qualified) buyer is willing to pay for it given the market & what other like homes are selling at during that time. Everything else is an estimate of value based on many factors. To determine a property’s true value, most people turn to either an appraisal or a comparative market analysis.
An appraisal is a certified appraiser’s estimate of the value of a property at a given point in time. To make their determination, appraisers consider square footage, construction quality, design, floor plan, neighborhood, and availability of transportation, proximity to shopping and school amenities. Appraisers also take lot size, topography, view and landscaping into account.
A Comparative Market Analysis (CMA) is an informal estimate of market value, based on comparable sales in the neighborhood, performed by a Real Estate
agent or broker. You can do your own cost comparison by looking up recent sales of comparable properties in public records. These records are available at local recorder’s or assessor’s offices, through private companies or on the Internet.