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Recieve your free CMA

The most common way a home is given an approximate value is a Comparative Market Analysis (CMA).

The CMA is determined by pulling comparable properties in your general area that have sold in the past 4-6 months.
The properties are assessed for selling price, time on the market, improvements, square footage, and other variations that are then used to give an approximate value of your home.
Because real estate markets change rapidly, a CMA can be out of date in a few months in some markets. It is always important to have a current CMA when considering the sell of your home.
CMAs, while based on data, are still very subjective. When looking at comparable properties it may be hard to account for things such as curb appeal, desirability of the home's architectural style, etc. This is where the agent's experience can help you.