Whether you are buying or selling a home, you will more than likely be faced with the age old dilemma of price vs. time. Sellers are typically faced with the need to sell within a certain period of time, or having the luxury of being able to hold out for the best possible price. Buyers are typically faced with the need to buy within a certain period of time or having the luxury of being able to hold out for the lowest possible price (assuming they have not fallen in love with a particular house and don't want to let it slip away). It generally boils down to price vs. time and which is the greatest concern for both parties.

This is just one reason among many, why the "average selling price" of comparable homes may or may not be an accurate indication of fair market value of a home for sale. Other reasons include general market conditions, interest rates, tight credit or money supply and whether home prices are increasing or decreasing at the time. For these reasons, both buyers and sellers need to be somewhat flexible in what they are willing to purchase a home for, or what they are willing to sell a home for.

It would be ideal if we had a "home price guide" that we could go by, however this just isn't the case, particularly in this current market where many buyers are holding out for the market "bottom" and sellers are holding out for a market "turn around". If you are a buyer and find a house you like, and plan to live it in for a few years, make a reasonable offer and buy it. If you are a seller and get a reasonable offer and don't want to sit on the house forever, take the offer. If a counter offer is made for a few dollars more or less, the "offer" is no longer valid and that opportunity for both parties may slip away.   

If a Realtor is assuring you that he or she can get "top dollar" selling your home, be skeptical. The Realtor is not the one selling (or buying) the home, and is not forced to choose between price vs. time (or letting an "opportunity" come and go). Their job is not to advise on what price a seller should hold out for, or what price a buyer should hold out for. Their job is to assist the buyer or seller in making the best decision they can, based on a combination of available market data and the buyer and seller's needs regarding "price vs. time". There is no "Comparative Market Assessment (CMA)" that will accurately determine the right fair market value. The ultimate fair market value is simply that price at which the seller and buyer eventually agree on, given the circumstances involved.