How much is your house worth ?

So how do you know how much your property is worth on the market? A real estate broker is best placed to answer this question. However, the range of prices he tells you is not a coincidence. The price is subject to current real estate market conditions.

It is not the broker who decides

This is the market! And the latter evolves quickly and can be difficult to assess. Take for example the post-pandemic period during which prices were very high and there was a scarcity of properties for sale. In this extraordinary context, brokers had to take into account even more factors than usual, including unbalanced supply and demand.

Analysis of comparables

The first step for a broker is to check what properties have been selling for in your neighborhood. More precisely those that resemble yours. This will give him a good idea of the price range for your residence; and he can adjust it up or down depending on what it has to offer. Individuals can hardly do this step since they do not have access to the sale prices of houses (they know the price asked by sellers, but not that accepted by buyers).

The determining factors

The analysis of comparables is far from stopping at price. Several elements are taken into account to determine the value of your home. For example, there is the living area, the number of rooms, whether the basement is finished or not, the condition of the materials, the year of construction or even the inclusions (swimming pool, central vacuum cleaner, etc.) . The broker will also examine whether the important items are still up to date. In fact, a renovated kitchen and bathroom will be worth more on the market.

A price that adjusts following work

Moreover, as an owner, you could choose to wait a few weeks before putting your house up for sale in order to carry out work that will increase its value. This may involve replacing a damaged floor, finishing the basement walls, changing outdated-looking cabinets in the kitchen, etc. Your broker could guide you in your choices. However, be aware that not all renovations guarantee an increase in value.

The risks of incorrectly assessing value

It can be tempting to ask your broker to list your house at a higher price than its real market value. But this carries risks. Asking too much could cause you to lose the chance to sell due to lack of visits. Also, the longer a property is on the market, the more potential buyers will have doubts about its quality (what if it doesn't sell because not all the visitors liked it? What's the point of visiting it?). Very often, people who set the price too high always end up lowering it after a few weeks.

In short, the price of your property could vary over the months, due to the constantly evolving real estate market. Your real estate broker is best placed to evaluate all factors. He will make sure not to ask a price that is too high or too low, in order to generate interest, get a maximum number of visits and allow you to have more in your pocket.