Homes Kitchener | Waterloo

How do REALTORS® determine the price of a property? The key element is to research the market and find comparable properties. Making comparisons is a blend of good research and market knowledge. Some basic guidelines to finding comparable homes are:

• The closer in physical proximity to the Seller’s home, the more comparable. Houses in Vancouver are unlikely to make good comparisons to similar homes in Ottawa. Some out-of-town Buyers are amazed at the market differences. This is also the case in larger communities — the house across town that looks like yours and perhaps built by the same builder does not necessarily have the same value as yours.

There really aren’t comparisons that can be legitimately made across the country or across the city. Remember the adage: Location, location, location.

• The closer in date to today for a sale, the more realistic the market indicator.
• The ability to be honest about what makes a comparison.
• The knowledge of sold prices. While a Seller may know what the neighbour asked for his/her home, he or she may not know what the final sold price was and if there were any concessions such as decorating bonus,  redone roof prior to possession, etc.. The sold price, not the asking price, is the real indicator of realistic expectations.
• Properties currently on the market but not sold are a competitive indicator — if they have been on the market too long, this could be a stigma and /or they are priced too high.
• The ability to adjust prices between similar properties that have differences. For example, adjusting the price for the difference of a two car garage in one home and only a parking pad on the other, the former will have more value (if the garage is functional). If one has an updated kitchen and the other is all original from 1970, then the former will have more value. While location is key and timeliness is vital, features cannot be ignored.
• Private for Sale homes: the buyer must use caution. The mortgagee (lender) will tell you that the selling fees (commissions) are built in the price of the property. Therefore the private seller needs to lower their price by 5% to 7% to be comparable assuming that all else is equal.

Pricing a home properly is crucial to selling. A REALTOR® is trained and an expert at property evaluation.

Since having an up-to-date property survey is generally of benefit to the buyer, sellers who can offer a current survey for their property will find it an attractive plus when promoting their listing.  Providing a current survey to the buyer helps ensure the correct information is properly disclosed, and that helps your sale to move smoothly to completion.  Sellers should also be aware that not every transaction requires a brand new survey.  It depends in part on when the last survey was completed, and what physical changes have taken place since then.  If there have been no improvements to your property, your current survey may be sufficient for your needs.

If a survey is needed, and no up-to-date version is available, you may be wondering who pays to have a new survey done.  The time to raise this question is during the negotiations between buyer and seller.  The seller is under no obligation to provide any such documentation, or to participate in the cost of a new one, unless it’s spelled out in the offer. Ask your Coldwell Banker salesperson for their expert advice on this and any other real estate matter.