comps + pre-mls inspection results + home's current condition & location =
                                  the market tells the seller their value
I also bring 3 sold, 3 pending, 3 active & 3 expired and ask them, "from each pile, which home is closest to yours?" Then we have that talk.

The seller 9/10 times tell me their price and they are usually right on to within $15K of what I was thinking.

We can chat by phone if you want more details.

Thomas J. Nelson, Realtor Beat us to a great answer.

Rarely do I have an issue with comps.  I trend the market. I price just at or ever so slightly below comps. And what Thomas said. 

The seller decides the list price based on the comps provided, suggested list price, and/or other factors.

I adjust for location of the house and recent upgrades.

ditto to Thomas' answer..... 

I'm with Thomas J. Nelson, Realtor ! Thats the best answer!

I can't say it any better than Thomas J. Nelson, Realtor.

Thomas J. Nelson, Realtor could be our CMA instructor.  Similar process used.

The improvements and upgrade do help to draw buyers. However there is a depreciation factored in. The 1 year old 100K kitchen will be lucky to get more than 25K, crown moulding etc may not add any value.  

Tony and Suzanne Marriott, Associate Brokers I make adjustments to all the items that are dissimilar to the subject property. Then I will take a weighted average of the three properties to come up with the market value.

Size, amenities etc - I rarely adjust for pools anymore but I do adjust for Lanai's

I use some of the standards the appraisers use and then I also use my gut. That is not learned it is internalized.

Lot size, square footage, age, updates, bedrooms, and any intangibles.

that my friend is the most difficult question in real estate in my opinion

Knowing that the seller already has received 'value' information for other agents mailing them bogus stuff, Zdevil publishing random numbers, the tax authorities providing a value for which the owner does not understand, all that 'just sold' solicitations coming to their door,  it becomes clear to me the owner is NOT in search of ANOTHER number.

Instead of piling heaping coals or transgression upon the head of the owner I tell a story that answer the only five question they have. At the conclusion they will ask apologetically, "We feel compelled to ask what are your fees?" Then "What should we list at?"

Of course I have the CIS Score. The owner values their house providing binary answers to 15 questions. The result is based on THEIR input not my magical numbers.  For over 2 years the CIS Score has been within 4% of sold price for houses between 250 and 800 K for homes I have and mostly for homes I did not list.

I will make adjustments for condition, number of bedrooms and baths, size of house and lot, pool, and year built.  Depending on the price range will determine the amount of the adjustment.

I have an excel file with ja worksheet for the cma, adjustment guide, and reparis guide.  If you would like a copy email me and I will send you a copy.

richard@investablerealty.com

Anything could be adjusted since properties are almost never "apples to apples". The trickiest adjustments are the "intangible" ones, that is something that is not physical ( 3 bths vs 4 or 2-car garage vs 3, 1 BR vs 2), such as the amenities the community offers (park, beach, lake) or the proximity to commuting routes. You really have to know your area!

Adjustments are made to the comparable properties to show if they are superior or inferior to subject.  The adjustments are calculated on the comparable properties, not the subject.   If a comp sold for $180,000, then you will add or subtract adjustments to account for positive or negative features.  After the adjustments are made, we have a new price that shows what the subject is worth based on the comparable sale or listing.

It can be confusing at first determining if an adjustment should be positive or negative, but it gets easier with practice.  Adjustments can be made for bedrooms, square footage, age or any other variable.  The basic idea is to use a negative adjustment on the comparable property, if the comp has superior features and positive adjustments on the comparable property if the comp has inferior features to subject.  

I make adjustments for a number of things, sq. ft., lot size, amenities, view, water frontage, depth, upgrades.  Most things have set adjustments, some I tweek monthly based on new numbers from data reconciliation 

The amount to adjust will differ from area to area. COndition should always be the same. Most often i adjust for size, garage, lot, br count and extras like deck, fireplace or porch

I am a builder's rep but we sometimes have to defend our prices...recently closed versus inventory...because our build jobs are usually more expensive that our to build because of buyer is willing to spend more on upgrades....

I determine a range based upon the comps and the comparable's condition.  Based upon that, I do an inspection of the subject property when I take the listing.  I adjust based on condition (tile v. granite counters, white v. stainless appliances, clutered v. clean, ...) amongst other factors, even down to the color of paint used (personal v. mass appeal).  Based upon how the subject property compares, it gets a price in that range.