When a homeowner decides to sell, there's no limit as to what they can list their property for. So how do you know if the asking price of that home you've been eyeing is on the money?

Your likely starting point is comparable sales - that is, recent sales of properties similar to the one you're considering in terms of location, age, square footage, number of bedrooms/bathrooms, etcetera. Knowing the selling price of "comps", as they're known, gives you an idea of how competitively priced the property is.

Where can you find information on comparable sales? The Multiple Listing Service, a centralized database that your real estate representative will access for you. In addition, your real estate representative can find out about pending sales, providing you with the most up-to-date information.

But these numbers don't paint the whole picture. Rarely will comps be exactly like the property you're eyeing, making it necessary to be evaluated on its own merits. Only by viewing the property first-hand can you and your real estate representative see what upgrades it has and what condition it's in, for example.

You'll also want to have any property you're seriously considering professionally inspected. Though a home inspection won't tell you what a property is worth, it will give you a deeper understanding of the home's physical condition, which is helpful information when it comes to evaluating a seller's asking price.

Ultimately, it's up to your lender's appraisal to assess the property's worth, though your lender won't order the appraisal until you apply for mortgage financing. But you can get information on comparable sales right away by calling your real estate representative today!