What' s your home - or home to be - really worth? This is probably the single most important question on every investor's mind.

The most effective way to answer this question is to check the sales of comparable properties that have recently sold in the area. While an analysis of pricing by this method sounds straightforward, there are some issues that can make this question a bit more challenging to answer.

For instance, when viewing 'comparable' properties, you must consider how old the comparable is. It is best to use comparables taken over the period of the last six months. Analysis of earlier periods may not produce an accurate value.

Also, certain details related to the home's locational situation will impact price, despite 'harder' aspects related to the property, such as number of bedrooms. For example, a nice view from the home tends to add value to the price, whereas a home on a corner lot tends to reduce value.

When conducting a price analysis, your Realtor should also try to find out what the special cases were surrounding the sale of any property that seemed to sell for less than other comparables. Any issues, such as deaths, divorce, foreclosure, could lead a seller to accept a price far below a comparable price.

Finally, remember to always keep in mind that no two homes are exactly alike. Difference in size, square footage, original details versus refurbishments, landscaping, and amenities surrounding the property - these are all factors that can all add or take away from the best selling price on a home.

I hope I have shed some light on the various issues that must be considered when it comes time to decide what your home is really worth.

For help assessing the real value of your home investment, please contact me - I will work with you to determine the fair market price of your current or future home investment.

To request assistance conducting a Comparative Market Analysis, please complete this online request form.

By Jim Mcfarlane, real estate agent serving home purchasers and sellers in the City of Chicago and Northern suburbs.

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