One of the most common questions that I get on a day in and day out basis is, "What is the value of this home?" Most often people are looking for an answer like the ones they they see on real estate shows on TV. They are looking for answers that are concrete like, "you've upgraded your master bathroom, thus that adds $25,0000 to your home," or "what a great deck that you've added to your backyard. You've spent $5K and will get back $15K on that investment."
That's great TV and it makes the seller feel good, but ultimately, that is not a true defination of value, especially in a buyer's market. Value is quite simply defined as the balance between how much a buyer is willing to pay and how much a seller is willing to accept for any good including that of real estate. This is why most real estate professionals will use a CMA (comparable market analysis) to guage what similar houses have sold in the past and what is currently for sale on the market. This is also how appraisers determine market value. Note: market value is constantly in flux. Your appraisal from 6 months ago is probably out dated.
When inventory is low, like that of the sellers market we saw three years ago, sellers can inflate prices because a buyer's desire outweighs the number of products on the market. But, once inventory begins to rise and/or buyer's desire or ablity to purchase begins to decline, the market makes a shift and becomes a buyer's market. The perception of value usually declines in a buyer's market often makeing the seller's market value over inflated. In a market economy this cycle between a buyer's market and a seller's market is ongoing.
As a seller in this market you have a decision to make. You can choose to wait out the market until it swings back to a sellers market. If you need to sell your house or just want to take advantage of buying a bigger home for less than a few years ago, then prepare your self to sell your home and not just list it. Remember, a good Realtor can only tell you what the market is telling you about your home to price it right. 
That Realtor should then market your home to the masses to locate the right buyer. In order to determine real value you must find an able and willing buyer to balance out the buyer/seller equation.
Michael J. Johnson
843-817-5299
michaeljohnson@carolinaone.com
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