Wow, My Home is Now Worth That Much?!

The real estate market in BC in the past few years has seen a steady increase in home values.  Fuelled by the Vancouver real estate market and a strong provincial economy real estate in sought after cities like Kamloops have appreciated in value.

OK, How Much is my House Worth?

You have probably heard the saying, ‘your home is worth how much someone is willing to pay for it’.  That is half the story, the other half has to do with what a seller is willing to sell.   True home values generally fall within a range with an ideally buyer or best case scenario at the top of the range.  If a home could potentially sell for $430,000 but it is instead listed for $399,000 there is a decent chance that even if a Buyer could afford/qualify for $440k they would still offer anywhere from $385k to $430,000 for that home that is listed at $399,000, it is just human nature.

The Listing Agent

Determining a listing price range can be part science and art it is possible to get a wide range values from different real estate agents.  When determining a list price it is helpful to have experience with a large group of buyers to get a sense of what buyers are looking for in a property and how much they are willing to pay for those features.   Bank appraisals for a home can be ten’s of thousands of dollars off (high or low), and property assessments can be 100’s of thousands of dollars off true market value.  The market value for a property always falls into a range – the ideal buyer will buy at the top of the range.  Depending on a Sellers personal circumstance/preference this can actually can play a role in determining how much their home is worth.  A motivated seller generally will price their home at the lower end of their house’s market value range.

Whenever a home is priced at or below market value it makes it easier for real estate agents to sell that particular home.  Price is the easiest thing someone can change about a property. A Buyer’s preference in floorpan, location, features, etc are much harder to change than its price. Your house could have an ‘excellent price’ to a certain buyer but to other buyers they would not be interested in it for basically any price.  Listing your property on a multiple listing system with a good real estate agent helps ensure you are exposed to every potential buyer.

Andrew Thompson

andrew.thompson@century21.ca

Call or text: 250-320-0154

Office: 250-377-3030

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