What have similar properties actually sold for?
Property Value
HM-KNOW-0002
What might a property be worth?
Start with the evidence. Then understand what the evidence can and cannot tell you.
30-second version
Start here.
What can buyers choose instead today?
How does this property compare?
Go deeper
Choose what you want to understand.
Price, value and cost are different
Three related words that answer different questions.
Price can mean an asking price, offer price, agreed purchase price or final sale price. An asking price does not establish market value by itself.
Value is an opinion supported by relevant evidence, property characteristics, market conditions and the purpose of the analysis.
Cost is what someone paid to purchase, build, repair or improve. Spending $50,000 does not automatically mean the property is worth $50,000 more.
The evidence we look at
Sold properties, active competition, the individual property and its market segment.
Recent comparable sales help show what buyers have paid. We consider location, type, size, age, condition, lot, garage, basement, renovations, timing and other meaningful differences.
Active listings help us understand competition and buyer alternatives, but an asking price is not proof of value.
Entry-level homes, executive homes, condos, acreages, new construction and unique properties can behave differently. There is not one single residential market.
A comparable is evidence, not an answer
Similarity, timing and meaningful differences still need interpretation.
A nearby sale can be useful without making another property worth the same amount. Ask how similar it was, when it sold, what condition it was in and what meaningful features were different.
Condition, future work and buyer effort can influence response. A buyer's mental estimate of that work may differ from the actual cost.
New construction and renovations
Complete-property comparison matters more than headline cost.
Resale may compete with new construction. Compare warranty, landscaping, fence, deck, basement, appliances, air conditioning, garage completion, timing, neighbourhood maturity and incentives.
Renovations can improve function, presentation or marketability without returning their full cost in sale price.
Range first. Exact number later.
False precision is not better advice.
The evidence may support a general range. That is different from pretending a computer-generated number is exact.
Unique lots, estate properties, large shops, unusual architecture, mixed-use characteristics and rural properties may need wider ranges when comparable evidence is limited.
Listing price is a strategy
Value analysis and market positioning are related, but not identical.
Once a reasonable range is understood, seller objectives, timing, competition, search ranges, inventory, demand, property strengths and likely objections all affect positioning.
After launch, showings, repeat showings, inquiries, saves, feedback, offers and competing activity provide new evidence that can test the original strategy.
Property-specific review
Ready to understand what your property may be worth?
Help people understand the evidence. Explain the uncertainty. Evaluate the individual property when the decision requires it.
Important information
Property Value information is for general educational and planning purposes only. Market information, examples, comparisons and preliminary ranges do not constitute a property-specific appraisal or guarantee of sale price. A qualified professional may be required where a formal valuation is needed.
Back to Residential