Why get a Comparative Market Analysis on my property? I KNOW what it’s worth!
We all have a general idea of our property`s value because we know what we paid for the property, the improvements we’ve done and what our tax assessments say. But what is your property worth in THIS market? It is very important to get a realistic idea if you would like to sell.
In doing a Comparative Market Analysis (CMA) to determine the current value of your property, the Realtor takes many factors into consideration. Comparable properties that have recently sold are the best way to determine the value of yours. In the city, it is very easy to find comparables, since there are average city lots, with average city construction. On Salt Spring, most lots are completely different from each other in every respect, from size to topographical features. Not only are the lots extremely dissimilar, but as we all know, construction and architectural styles vary as much as the people here do! You never know what you’re going to find behind anyone’s door. That is one of the many charming aspects of Salt Spring.
To find commonalities among properties to define the value, we consider lot size, number of bedrooms and bathrooms and age of the home, for example. When we find similar homes that have sold with similar criteria, we can determine an average selling price.
Another method we use is called ‘Bricks & Mortar’. This approach considers the land value and then the value of improvements . To do this type of evaluation, we look at the current replacement building costs and depreciate those values, given the age of the buildings. The level of upgrades, modernization and maintenance are all factors here.
Finally, tax assessments. These become a sensitive point with some people, who may every year have protested the assessment of the tax department so as to lower the property tax payable. When they sell, they play the “undervalued “ card. Property tax assessments often appear out of line, and when you take an average of assessed values to sold values, you get a good picture of how ‘out of whack’ assessments really are. We continue to see that homes on Salt Spring are selling anywhere from 60% to 160% of assessed value.
CMA’s are not a perfect science. But they DO give Realtors and home owners alike a realistic idea of current market values.
Thinking of selling your home? Call Claire or Cade today for your free CMA.