Newsletter Articles

The true value of your property

How is the value of your property determined? This is not always an easy process, calculating a home’s true value is both a science and an art. One thing to keep in mind is that market value and appraised value are not always one and the same.

When a professional appraiser / valuer is establishing a home’s fair market value, there are many factors that have to be taken into consideration. Such factors include the value of any of the property’s improvements since its last sale, recent sales, and rate of appreciation for the surrounding neighbourhood.

Yet, for your home to be truly comparable to those in the immediate area, the properties would have to be built in the same era, have similar features and the same buyer profile. As this is rarely the case, a valuer will usually look at three recent sales to aid in ascertaining your property’s value. Once a value has been obtained, it can be interpreted in a variety of ways.

For example, real estate agents representing the seller will tend to lean towards the higher end of the value range, known as the ‘highest and best’ value. However, a property has different values for different buyers and ultimately the value of your property will only ever be what someone is prepared to pay.