Home value is based on actual selling prices because that is what a real person recently paid, but when prices are falling as they have during the summer and fall of 2007 you should review the prices of homes currently on the market in your area.

Consider your property through the buyer’s eyes and judge how your asking price compares—whether it would attract you before you knew the property.

Find current asking prices by checking classified ads for houses in your area plus Internet sites such as Realtor.com. Compare actual selling prices to the average asking prices of similar homes not yet sold.