How A Toronto Real Estate Agent Determines Price

Every homeowner values their property and might even have a specific sales value for their house. They will pitch this expected price to the buyers if they plan to sell the property. However, the actual value of a home depends on several factors. The cost of a property may be affected by its neighbourhood or even the hazards it's exposed to. Toronto real estate agents are familiar with the factors that impact the price of a building. They also use these factors to calculate a home’s sales value. Some of these factors include the following:

Location

The location of a building impacts its valuation. It is one of the most significant factors real estate agents in Toronto use to determine the price of a property. Sometimes, the location of a property may even be more important than its features, condition, and square footage. For instance, a home in Bridle Path will be better valued than a home in Windsor with the same features. This is because Bridle Path is an affluent neighbourhood with some of the wealthiest people in Toronto.

Building’s Age

A building's age also plays a crucial role in determining its value. The older the building, the lesser its value. However, some old historical buildings attract higher value than newer ones. This is because of the history attached to the building.

Current Condition

Real estate agents in Toronto use a building’s current condition to determine its value. If the building needs lots of renovation, it will command less value. However, if it is newly renovated. Its value will be higher. 

Comparative Market Analysis

One of the most common tools real estate agents use to determine the price of a property is comparative market analysis (CMA). They evaluate similar buildings in the neighbourhood that were recently sold and bought. They also assess the community where the property is located. This helps them calculate the property's value. 

Home Appraisal

A home appraisal is another standard tool that real estate agents use to determine the value of a property. It works like comparative market analysis (CMA), but it is more informative and practical. Real estate agents in Toronto may do the home appraisal themselves or hire highly-trained and licensed professionals. 

These professionals, also known as home appraisers, determine the property’s value by inspecting and measuring every aspect of the property. They check the building’s condition, features, amenities, and recent renovations. They also check its deferred maintenance, the environmental hazards it’s exposed to, and other factors that can impact its marketability.

Evaluate Comparable Properties

Many real estate agents in Toronto evaluate the comparable properties in a building's neighbourhood to determine their value. They check the value of similar properties in the area and value the building based on that. It also works like comparative market analysis (CMA), but it is less effective. 

If you need a reputable realtor to help evaluate the price of your property, you should consider Will Doyle. We can help you determine the value of your home with our practical tools and systems in place. Contact us today to book an appointment.