Whether the sale is made by a real estate broker or by you, appraising a property is not a simple task; you must be objective and be aware of current market conditions. There are no hard-and-fast rules for determining the correct market value of your property. What is more, various market conditions, which regularly fluctuate, can affect whether the price goes up or down.
The law of supply and demand also applies. The fact is that your property is worth what buyers are willing to pay for it.
You can base your asking price on the prices that comparable properties recently sold for in your neighborhood.
However, as you search for comparable properties, keep in mind that the asking price is rarely the price paid.
Another factor to consider in estimating the price is the time frame within which you are hoping to sell your property. If you need to sell quickly, the asking price is more likely to be subject to change than if the time factor is secondary to you.
In addition, recent renovations made to your property, its location in a sought-after area or high-demand neighborhood, the overall living space and several other factors will influence the sale price.
The following features could affect the value of your property:
· the size of the plot of land;
· construction materials used (e.g. all sides of building made out of brick versus a brick
· proximity of services (e.g., daycare, schools, grocery stores, etc.);
· interior finish and existing décor;
· and many other factors.
Certified real estate appraisers and real estate brokers are specialists who can help you value your property. You can call on their services to obtain a report that will help you set and validate your price. Finally, don’t forget that the market is constantly evolving.
Frequently Asked Questions
How is my home’s value determined?
An appraiser will visit your home to view the property, take measurements, and collect visual data. The information collected, along with data from the city or county, and industry and costing databases, is used along with recent sales of similar properties to establish the appraised value.
Where do Appraisers get their information?
Appraisers use a wide variety of sources, including the homeowner, the local Multiple Listing Service, city or county databases, and the appraiser’s own files.
Would every Appraiser give my home the same value?
Although the values could vary somewhat, they should all be within a similar range if the appraisals were completed within the same time period. A good appraisal report should be able to show a reader with little experience the reasoning behind the final value, and an objective reader should agree after reading the report.
How is an appraisal different from a real estate agent’s Comparative Market Analysis (CMA)?
Appraisers factor in general condition, location and construction quality into their appraised value. They use well documented data from reliable sources to analyze the property and calculate an accurate value, and they will include supporting documents in their appraisal report. A CMA is often an estimate loosely based on trends and more often on active listings than recent actual sales, even though sales prices are often different from the listing price. In addition the CMA value is intended for listing purposes and the listing value varies by real estate agent depending on how they intend to market your home, whereas the appraised value is what the appraiser feels the home would actually sell for in the current market. Keep in mind as well that the average real estate agent will sell 10 – 15 homes per year whereas we appraise 10 – 15 homes per week. The appraisal is created by a qualified professional who has made a career out of valuing properties.
What is the difference between your appraisal and a bank’s appraisal?
The process we go through is the same regardless of the client, therefore the report and value we provide is exactly the same.
Do people generally list the property for sale at the price you appraise it at?
An appraisal report provides recent comparable sales that reflect what the appraised home will most likely sell for. Based on the report, a homeowner can decide how they would like to price their listing in the market. If you’re selling privately and do not need to pay out Realtor commissions, then you have some room to either lower your listing price or to list it for the appraised value to allow for lower offers. If you’re going to use the appraisal report as a marketing tool (showing potential buyers the appraisal report) then you could list it at the appraised value. You also need to take into account whether it is a buyers market or a sellers market.
Are your appraisal amounts usually higher or lower than what the property would typically sell for?
The appraised amount is an appraiser’s professional opinion of a property’s current market value; in other words, it is the price they have determined the home would sell for in the current market. Although it is a professional opinion, buyers also have their own opinions and some may offer more or less for their own subjective reasons. What an appraiser bases their values on are the properties that have recently sold, so it is a good indicator of current market value.
How long does an appraisal take?
The physical viewing of the property typically takes an average of half an hour and depends on the home itself. For the majority of residential properties the report can then be delivered the next business day.
Do I have to be at the appraisal viewing?
Although it is recommended, the homeowner does not have to be present at time of viewing as long as the appraiser has access to the home. If you are not present at the appointment, the appraiser may still have some questions for you to answer via phone or email.
How should I prepare for my home’s appraisal?
The entire exterior of your home should be accessible for viewing and measuring. The interior should be tidy enough that all areas of the home are accessible for viewing and to take photos for the report. Try to be available to answer any questions the appraiser may have about the property, as well as any recent improvements you may have made. It is also helpful to have your most recent Real Property Report and Tax Assessment available, as well as any floor plans, or purchase agreements if applicable.IMPORTANT: In order to use this service, you must be the legal owner of the property you are inquiring. Be advised that we will verify your name with the ownership documents from Montreal public records.