With all of the confusion in the real estate market over the last few years, many homeowners are concerned about the value of their property. If you’re thinking about selling, knowing what your house is worth becomes even more critical. The amount your earn from your sale helps to determine your next steps. However, in a fluctuating market, getting an accurate assessment can be a challenge. A valuation done in February no longer applies in April. How can you obtain the best estimate of the value of your house?
Consider the Big Picture
Many factors can influence the final selling price of your home. However, it primarily comes down to what is happening in the market overall. If conditions are busy and there is a lot of demand from buyers, the value of your house naturally goes up.
When few people are buying, real estate prices will fall. There is a natural ebb and flow to the market, which is why your first step is to understand the conditions in your area. At any given time, one of three scenarios will be true:
- We are in a seller’s market.
- We are in a buyer’s market.
- The market is balanced.
Fluctuating housing values can be a source of anxiety for many homeowners. And conditions can even vary from one neighbourhood to the next. However, you rarely have to worry as long as you sell and buy in the same market. In other words, if you sell high, you can expect to buy high unless you’re lucky enough to have perfect timing. But there’s no need to panic if you sell low because you will also buy low.
What matters is having accurate information and statistics so that you can create realistic expectations. Your real estate agent can help educate you on the current market. You can also access the latest trends through websites like TRREB (Toronto Regional Real Estate Board.) Once you have the big picture, you can focus on the more intricate details that make up the value of your home.
What are some of the top neighbourhoods in Toronto where homes have high resale value? Find out more in the posts below:
- Up and Coming Neighbourhoods for Families
- Top Dog-Friendly Neighbourhoods in the West End
- These Toronto Neighbourhoods are Perfect for a Fresh Start
Your Location is Key
Undoubtedly, you’ve heard that old saying, “location, location, location.” It’s the number one rule in real estate, and it’s one of the many reasons Toronto homes are so valuable. A house in poor condition in a highly desirable neighbourhood is instantly perceived as more valuable than a pristine home in an unpopular area.
To a large extent, the desirability of your location is out of your control. A neighbourhood could be trendy when you buy and then fall out of favour as years go by. Alternatively, what was once a sleeper location could turn around and become one of the most up-and-coming hotspots in the city. You just never know.
However, thorough research and a comprehensive marketing system can help you earn the best results from your sale, even if you’re not in the most popular neighbourhood in the city. How? Just remember that everyone is different, and a successful sale is all about finding the right person. An area that is unappealing to one buyer might be highly appealing to the next.
What is a CMA?
A CMA (Comparative Market Analysis) is one of the best tools to determine the value of your property. A real estate agent will gather all the current data on homes on the market and how much similar properties in your area are selling for. They will also factor in the physical attributes of your home, including:
- The age of the house
- The square footage and lot size
- Your location
- How many bedrooms and bathrooms are in the house
- What recent renovations and upgrades have been made
- The layout of the home
Since the market can change so rapidly, you can’t rely on the results of an assessment performed months ago. Before listing your house for sale, it’s essential to have the most recent data to guide your selling strategy.
Did you know that we offer free home evaluations? You can book yours right here.
Accurate Pricing Is Critical
Nothing influences the results of your sale more than your pricing technique. Setting your initial price too low or too high can mean selling for less than you deserve – or not at all.
Undervaluing your home may result in a fast sale but for less money. In the worst-case scenario, potential buyers may think there is a problem with the house and move on.
Overpricing your home will frighten buyers away and generate little to no interest in your listing. Many people believe it leaves room to negotiate, but it often results in your property languishing on the market.
The trick to selling for the highest amount possible is to sell fast while there is still a buzz of excitement about your listing. Getting your price right from the beginning is the best way to make it happen. The results of your CMA will give you a starting point. However, your real estate agent will work with you to come up with the perfect sweet spot that generates interest and reflects what your house is really worth.
Minor details can make a massive difference when selling your home. Here are some more ideas to consider:
- Is Staging Your House to Sell Still a Good Idea?
- Home Renovations to Avoid When Selling
- Home Renovations to Improve Your Resale Value
What You Can Do to Add Value
Now that we’ve talked about factors you can’t control, let’s focus on what you can! Certain upgrades and renovations can add tangible value when selling your home. The good news is that you likely don’t need to invest in a significant overhaul. In fact, it’s probably better that you don’t. Many expensive home improvements don’t add to the value of your sale. And many minor updates can have a massive impact. When deciding on your upgrades, think of what your potential buyers want.
Most people want plenty of storage, natural light, a modern look, and a spacious feel. With that in mind, here are some small finishing touches that can help you boost your bottom line:
- Clean and declutter your home thoroughly. The less stuff you have lying around, the more spacious your home looks. Remember to scrub your windows so the sun can shine in.
- Cover your walls with a fresh coat of paint. Neutral and light colours can make your home seem more modern and full of light and even make the space look bigger. That’s one minor update that does a lot of heavy lifting!
- Replace bathroom faucets and silicone around the sinks. These easy updates create a more modern-looking bathroom.
- Add new kitchen backsplash and drawer handles. The kitchen and bathrooms get a lot of scrutiny from buyers. These small details will help you make your listing stand out.
- Spruce up the outside of your home. The exterior of your home creates curb appeal, making for an attractive and inviting atmosphere. Make sure the lawn is maintained and all debris is cleared away. Your potential buyer should gasp in amazement the minute they pull into the driveway.
Are you ready to get outstanding results when selling your Toronto home? We are committed to providing you with expert guidance and support every step of the way. Contact us today at erica@ericareddy.com or call 416.443.0300 for more information or to get started.
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