Is That House Worth the Asking Price?

With home values all over the map and local markets faring very differently in the wake of the housing bust, how do you know if the seller's list price is on the money?

For most buyers, it starts with what's known as comparable properties, or comps. In theory, a seller could price their home however they please -- but comparative home research allows an educated buyer to place the real value of a home within a reasonable range. If you're working with a real estate agent, they will compile their comp research into what's known as a Comparative Market Analysis (CMA).