Ever at a loss of how to explain in simple terms the valuation of a home?  You have prepared an analysis of a property value for your clients and now are visiting with them with blank stares across the room.  Maybe that electrical engineer is quizzing you and they just can't quite grasp how you derived at you range or recommendation.

Task made easy ... give them a visual image.  Explain that you have thoughtfully prepared an analysis that mirrors what the buyers in a market are willing to pay for a home.  Take them through these steps to stir them to your conclusion:

• Your home is like a jigsaw puzzle.  Each piece of the puzzle represents an important amenity, feature, componet that a buyer will recognize and give credit. 
• The borders of the puzzle is the entire site that your home is situated.  The buyer recognizes your home's location, site size.
• As we build this puzzle the buyer will recognize a view amenity, also will add for a positive view or deduct value for some view challenge such as traffic, view of multi-level structure such as apartments, etc.
• As we continue to build the puzzle the buyer will recognize the living area as one factor, number of bathrooms, number of bedrooms, finishes such as fireplaces, garages, kitchen features, etc. 
• Condition is a piece of the puzzle, level of updates.
• When you complete the puzzle you have the total picture and the value.  Each piece that the buyer assigns value makes up the completed puzzle.

When a buyer visits a home they have things that they are seeking.  Each one of these items are of value.  The value of each piece is determined by what the buyer will be willing to pay for that item.  The value a buyer is willing to pay does not necessarily equal to the cost that the seller paid for that feature.  The buyer dictates the market value of a home, not the seller, not the cost, not the appraiser and as much as I would love to have the power, not the Realtor.  We need to adjust our thinking and realize that the buyer sets the tempo for what homes will be worth.  That is what an appraiser does in their analysis, they make adjustments for varied facets of a home that mirrors what a buyer would be willing to pay.

To be able to see your completed puzzle clearly Realtors need to explain that several homes should be considered and that one sale or listing does not make or break the value of a home.  Many factors need to be put together like this puzzle to see the total picture.  Step back and see the entire picture, not just one isolated piece.