Enlisting the help of an estate agent in British Columbia offers multiple benefits, but none quite as important as their guidance on your listing price.
While there are many different factors that need to be considered, here are a few of the main questions that your agent will ask when deciding on that ultimate number.
What is the overall condition of your property?
Your agent will organize a visit before deciding on the price, including an external and internal viewing of the property. This will help them understand the state of the property and how certain things might affect the price.
For example, if you recently underwent a kitchen renovation, this will give you a competitive edge that will add to the value.
If you have something that needs repairing, like windows, mould, or water damage, then this will decrease the price you can list your home at. In some cases, your agent might advise you to hold off on listing altogether until the issues are addressed to help save a headache while selling.
What are the recent nearby comparable sales?
Next, your agent will look at recent comparable listings and sales in your area and how they compare to your property.
This step is important because the other homes currently listed are your competition. Buyers will be comparing them to your home. If you are priced too high, you could drive away potential buyers who will offer on the other properties. If you are too low, you may sell below the market value.
Each home is unique so it is helpful to have an experienced real estate agent help determine the best price for your property. There are many factors that come into play such as externalities, finishings, layout, size, age and the overall presentation of the property.
How is the market reacting now and in the near future?
It’s no secret that real estate is a cyclical industry, especially over the past few years. The market responds to many economic factors both positive and negative. Interest rates, supply and demand, immigration, government policies and other factors come into play and these factors are always changing.
Agents with years of experience will have been through these ups and downs and will understand how it will evolve and the effect it may or may not have on your asking price.
No matter what is happening in the market, your estate agent will be able to advise you on a pricing strategy that will increase your odds of getting the price you want.
What is your property valued at on the BC Assessment tool?
It’s important to note that assessed value is not market value. This assessment is made based on values from July of the previous year, so depending on market conditions your list price could be higher or lower than the assessed value.
The assessment of your home is used for tax purposes. An agent may use it as a starting point for the valuation process, but these values can vary dramatically from property to property. If you refer to the BC Assessment website, you will learn more about how they assess your home. The main factors they take into consideration are:
- How it’s currently being used – I.e. residential or commercial
- Its location
- How much did it originally cost and what it would cost to replace it
- The revenue value of the property
- The value of the land
- Improvements (if known)
- Physical factors, such as size, age, quality and the condition of the building
- Services around you
- Topography of the land
What are you hoping to get for your home?
Make sure to communicate what you expect to achieve in a sale with your agent to help determine if your expectations are realistic. Some realtors may overestimate the sale price which will end up in disappointment and a lot of wasted time for the seller. Setting goals with your agent and working together to achieve them will ensure you are happy with the outcome.
If you are considering listing your home I would be happy to present an obligation-free valuation that will give you a very accurate idea of what you can expect in the current market.
I can also advise on the updates needed or not needed to get your best price along with a discussion of the current market conditions, your timeline and other important factors. See my bio for more information.