Everyone dreams of unlocking a secret room or feature in their home that will unleash unexpected and tremendous value to their home. But did you know there are actual experts out there who can help you discover the hidden value of your home? By getting a real estate appraisal or property valuation, you can better determine the market value of your home.

What Is Price And What Is Market Value?
 

Market value is a term you will hear often from real estate agents. When they are referring to the market value of your home, they are creating a valuation based on what the general population is ready to pay for your property. This can entirely differ from the price of your property, however. Because while market value is a general term, an individual might view your property under a different lens and see less or more value than what is being asked.

Need For Real Estate Appraisal
 

Real estate appraisal is a complex process as no two properties are identical. Every property has a different value and in order to determine that value there are three general methods used:
 

Income Capitalization Approach 
 

This method of valuation is performed generally for investment properties or commercial properties. It takes into account the income stream into the market value or present value of the property. 

 

Sales Comparison Approach 
 

This method is one of the most common ones you will hear when speaking to real estate appraisers. By comparing similar properties in the same area with similar blueprints to the one you are hoping to sell, you can get a ballpark figure of what yours is worth. 

 

The Cost Approach 
 

Also known as the summation approach, this is the oldest method used for determining the value of a property. It sums up the value of the land and deducts the depreciated value of any improvements. This method works great for new constructions, but less so with resale / older constructions. For non new constructions, it is better to go with the sales comparison approach. 
 

Getting a real estate appraisal is truly the first step to understanding the current value of your home. From there, you and your real estate agent can discuss what assets you might not have considered that belong to your home so that you can better accentuate them when you go to market. Alternatively, an appraisal might highlight a few quick fixes you could make that when performed, could add several thousand to the valuation of your property. 

 

While there might not be buried treasure in each of our homes, there is a way to unlock the hidden value of your home. By getting a real estate appraisal and understanding what buyers in general are looking for, you can sell your home for more. 


 

If you are thinking about getting a real estate appraisal and need some help, please reach out to us here. We would love to help you on your journey of getting the most value for your home.

 

Thank you for reading today’s BLOG!



 
 

Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com

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