How do You Establish A Home’s Market Value?
Once you’ve decided that you want to place your home on the market, one of the considerations you’ll be making is what price do you want to place it on the market at.
When you’re establishing the market value of a home, there are three important factors that you have to look at:
- Comparable ‘ACTIVE’ listings in your neighbourhood.
- Comaparable ‘SOLD’ listings in your neighbourhood.
- Comparable ‘EXPIRED’ listings in your neighbourhood.
Comparable ACTIVE listings are homes in your neighbourhood that are similar to yours which are currently on the market. They represent your competition and give you a sense of what other homes buyers will be looking at, in addition to yours, before making a buying decision.
Comparable SOLD listings are homes in your neighbourhood that are similar to yours which have recently sold. They represent the bottom line. The sales statistics of these homes will give you a sense of how much a buyer would actually be willing to pay for a home like yours in today’s market.
Comparable EXPIRED listings are homes in your neighbourhood that are similar to yours which were placed on the market but did not sell during the listing period. These statistics will give you a sense of how much would be too much to ask for your home.
After making value adjustments for factors such as specific location, features, upgrades, development and overall condition, a competetive price to set for your home would be somewhere in the range between the average asking price of the comparable active listings and the average selling price of the comparable sold listings.
Where exactly along the range you should list your home at, would depend on what your goals, priorities, objectives and timelines are.
If you’d like to find out the value of your home, I’d be happy to help!