Bob Barker is about to retire and now you are going to have to look to someone else to help you understand the value of your home.  So who are you going to believe?  With so many opinions on the value of your home let's take a look at the difference at see if I can help you understand why there are so many opinions on value.

County Tax Assessments: The county tax "man" looks at general data about home sales in specific area (not just one neighborhood).  The data is a backward glance not a forward projection.  So when you get the tax value and you say but houses in my neighborhood aren't selling for that price, remember that they might have been last year.  Tax assessments don't know if you have a $70,000 kitchen remodel and so that is not a factor in your assessment.  If you added a second story to your house and pulled all the correct permits that may be reflected by a higher tax value.  So with a weaker housing market in Northern Virginia in 2007 you may see a reduction in your tax assessment in 2008.

Bank Appraisals.  Appraisers work with the current market and usually visit the property they are appraising and actually see the $70,000 kitchen.  The take pictures, they draw floor plans, they talk to the agent and they have a good idea of what has recently sold in the neighborhood.   They look at sales for the last 3-6 months, another backward glance (they do not use properties that are currently for sale as a comp) but they have a set formula for making adjustments to a properties value based on the neighborhood, the condition and the amenities in the home.  The lender uses the appraisal to determine the loan amount that a buyer can acquire for the property.  Appraisals must be current to be valid which is why the bank sends out an appraiser to value the property immediately after a ratified contract is received on the property.

Comparable Market Analysis (CMA): This is the one that most real estate agents use. It compares properties that have sold in the same 3-6 month timeframe that an appraiser uses but it also looks at properties currently on the market.  An experienced agent will have previewed the other active listings on the market to be able to tell you in detail the differences in your property and the others in the neighborhood.  Agents also know what a buyer is typically looking for in a home.  If your home doesn't have it then it must be priced to reflect the difference.  Also don't think that the $70,000 kitchen is actually worth $70,000 more in price (Cost vs. Value).  In a "buyers" market selling concessions also play a part in the value of your home.  If the home down the street sold for $575,000 and the seller provided $15,000 in closing cost assistance the NET value of the property is $560,000 which you need to factor in to the pricing of your home as well.

Zillow:  The jury is still out on Zillow ( Zillow the Debate Continues).  It is a tool for you to look at and explore.  You should not rely on the information on the site to price your home or accept an offer from a potential buyer because of a "zestimate".

So what are you to do?  If you are ready to put your home on the market then you should contact a local experienced agent who can give you an honest evaluation of your property.  Don't be fooled into thinking that the agent that gives you the "highest" price is the agent that you should list your home with.  Make the agents walk you through how they came up with the price they are suggesting.  Putting a value on what could be your largest financial asset is not an easy task.  In the end no matter what price you set it is the buyers who will tell you what the value of your property really is.