Welcome to the first entry of the Property Posts section of BarrieRealEstateTalk.ca!
In this section I will endeavour to simplify some of the complexities of buying or selling a home. Not unlike the role of a Lawyer, or Mortgage Agent , real estate professionals are often asked the same questions on a daily basis and it is important to answer them accurately each time; as the answers have an impact on the largest investment most people will ever trade.
The first topic I would like to cover is how residential real estate is evaluated:
In your daily travels, online browsing or skimming through the newspaper you might have seen real estate agents advertising something to the effect of “Free Comprehensive Analysis” or “Complimentary Evaluation” which always gives me a chuckle because I don’t think your average homeowner really understands what this process entails, and as such, isn’t likely ask for one when thinking of selling. What they are really offering up is “Let me tell you what your home is worth if you were to list it today”
Fundamentally, there are two main data to consider when determining the current market value of a home, in a nutshell they are:
1) Sales of homes that are similar in size, layout, features, etc., during the previous six months
2) Other homes that are similar in size, layout, features, etc., that are currently on the market
The combination of these two will provide a homeowner with a rough price window, and at least an idea of what they might expect at the end of the day. It is very important to note, however, that it is often very semantic differences that make all of the difference in pricing a home. For example, if two homes are being compared that are the same size, in the same area, same age (you get the idea) but one of them has something like upgraded flooring, or an upgraded kitchen which make a significant difference in what the asking price should be, and what the home owner can expect to sell for.
Equally important is the fact that because this pricing strategy is based on sales and comparable listings, that the “figures” change each and every time a home sells or a new comparable home is listed. If you’ve spoken to an agent “a few months ago” about your home’s value, you owe it to yourself to do so again prior to listing.
In a nutshell, my answer to your question “What is my home worth?” is and always will be, “I’m not sure, I’d have to see your house!”.
A great real estate agent will take time to look at the bigger picture, but also sift through some of the more finite details that will unquestionably have an impact on the sale price of your home.
