Have you ever wondered how your real estate agent determines what the value of your property is? Accurately evaluating your property is beneficial to both Sellers and Buyers. Here are the methods used by real estate agents when determining market value.

   The most important tool that a REALTOR® uses when evaluating your property is the analyzing of recently solds, active listings, and expired properties that are comparable to yours. They put this data together in a CMA (comparative market analysis). Your Realtor will take a look at what a comparative property was listed for versus what it sold for and how long it took to sell. It’s also important that they look at different neighbourhoods as they can have an impact on the pricing. 

   Property specific factors also play a big role in determining the value of a property. For example, a home with an ocean view and pool will have more value compared to a home with a hot tub and mountain view. Other factors include size of property, age of home, condition, recent upgrades, zoning, neighbourhood amenities, and curb appeal.

   Real estate agents face challenges when determining market value. One of the toughest challenges is having a great comparable property but it’s drastically over-priced. Some prices are not great reflections on the market and these higher priced homes are sometimes seller driven. Another challenge that can arise when evaluating a home is that the home may be unique and there are a lack of comparables. This makes doing a CMA tricky and lacks data.

   Determining market value of a property is a complex process that requires both expertise and local knowledge. Realtors use a variety of tools and methods for analyzing comparable solds and active listings. Whether you’re selling a home with an ocean view or a mountain view, working with a knowledgeable realtor who understands the intricacies of market value assessment is key to achieving the best possible outcome in your real estate journey.