Appraising a home’s value is both a science and an art.
By definition, the market value of real estate is defined as “the highest price a property will bring to a willing seller if exposed for sale on the open market, allowing a reasonable time to find a willing buyer and with neither party acting under necessity, compulsion or special circumstances.”

Comparative Market Analysis (CMA), an Appraisal, a Letter of Opinion, or an Opinion of Value are all terms Realtors and the public use to refer to assessing the value of real estate. Most Realtors prefer to use CMA because it’s the most descriptive term for the appraisal method they use.

So how does a real estate agent determine a property’s value? First, they perform a thorough inspection of the property and do extensive research and analysis. This includes looking for the most recent sales of similar properties. They also analyze properties that were on the market and didn’t sell. Finally, they research all similar properties currently for sale on the market.

Once all the comparables are selected, the agent will make dollar adjustments for the differences between the properties. For example, if a recent sale was identical to the subject property in every way, except for the fact that the comparable property had a detached single garage and the subject property didn’t, it stands to reason that the latter will sell for less than the former by the value of a garage.

The agent will then extrapolate the actions and decisions of other buyers and sellers and present an opinion within a narrow range of value of what the probable selling price of the subject property is.

Historical data for the property is important, but the current state of the market is also a strong influence. For instance, are prices trending up or down? What is the supply and demand for such a property within the immediate neighbourhood?

Based on all of the data and the agent’s professional “gut feeling” and experience, they’ll provide the seller with a market value of their property (for example, between $190,000 and $200,000).

The agent’s experience in the market, and his knowledge of recent sales, client comments, peer discussions and the like add another dimension to the data. Knowing that the home down the street was professionally staged or had significant upgrades (or not) affect the market value of similar properties. Location is also very key and isn’t always evident when reviewing hard data.

Because market value is defined as what a buyer would pay and what a seller would accept, in order to pinpoint the value more precisely, the seller’s motivation (or urgency to sell) needs to be considered and discussed.

Market value is important because it’s what determines where homeowners set their price. If they’re too high, they’ll miss qualified buyers and a quicker sale. In the recent marketplace, pricing homes very close to their market value, or even a bit under, quite often leads to fast decisions from buyers, and sometimes multiple offers, which can maximize the sale price.

Other ways to maximize market value include ensuring your home is scrupulously clean, clearing away all clutter, and looking after all the little details (remember that “Honey-do” list?).

Additional improvements that tend to yield faster sales and give sellers most of their investment back are painting, kitchen and bath updates, or hardwood flooring. The website www.howrealtorshelp.ca offers additional tips and ideas, as will your Realtor.

 

After you’ve built your new deck, it’s important to ensure it’s protected and maintained properly. This will add years to the life of your deck, and a well-maintained deck will add value to your property. The first step in protection is to seal and stain. Most deck stains on the market today have a weather sealer mixed in that will protect the wood from natural elements. A good stain will help preserve the wood by repelling water, inhibiting mildew and screening out UV rays that can change the colour of your deck.  To provide the deck with maximum protection, it should be restained every two years.

Another way to keep your deck in good shape is to make sure that it’s properly cleaned at least twice a year, particularly after the winter.  You should sweep your deck often, and scrub it down several times a year.  This will keep dirt and decaying matter, such as leaves, from damaging the wood. Make sure you clean the cracks between the deck boards as well, because if leaves and other vegetation are trapped there, they’ll cause the boards to rot. When cleaning the deck, you have several options. If you have a small deck, a scrub brush and detergent will do the job. For larger areas, you might consider renting a pressure washer.

While cleaning, take the time to inspect the deck for damage. Any rotting or damaged boards should be replaced immediately, and the new boards should be stained and sealed. 

A well-maintained deck can enhance the value of your home and provide enjoyment for your friends and family. By following these hints, you’ll ensure that your deck is in top shape for years to come.