Bringing you important insight to our real estate market, driven by years of experience and proven success in any market.
Accurate Market Evaluations:
Our Proven Process
Last month we told you to throw away your BC Assessments, as they are generally an inaccurate and distracting indicator of market value for properties. Below are a few examples of recent sales that demonstrate this.
Example 1: 157 McCulloch Drive, Penticton BC was assessed at $799,000. Our clients purchased this property for $766,500.
Example 2: 105 Murray Drive, Penticton BC was assessed at $686,000. This property was substantially renovated to a high standard and is a true rancher. This home sold for almost $200,000 over assessed value at $860,000.
How do we determine accurate property values? Our experienced real estate team goes to great lengths by using 3 evaluation approaches to ensure accuracy.
1st method: Sales comparison approach. This approach considers the selling prices of similar, recently sold properties. Those sales prices are adjusted to reflect the time, conditions, and differences between the comparable properties and the subject property. The result of the adjustments is a subject value estimate.
2nd method: Assessing the competition in the market. This approach reviews the active and expired listings of comparable properties. Competition includes all relevant listings that are currently on the market that will be competing for the same buyer. The more similar properties on the market, the more realistic pricing must be. When there are limited competing listings, then pricing can be more aggressive.
Expired listings were seen by the public and rejected because price was out of line with the market. This helps identify a listing price that would be too high for the subject property.
3rd method: Any information and insight into the value of the subject property that has not been identified through the other two methods.
By committing to the time and effort of a professional evaluation we can ensure our Sellers don’t leave any money on the table and our Buyers don’t overpay for a property.
