Archive for the 'Property Value' Category

November 23, 2018

The Canadian real estate market is in a state of fluctuation, which can make determining a listing price difficult to say the least.

Between rising interest rates, mortgage stress testing regulations, uncertain house prices, increased competition, and the like, there are many factors that might be affecting your usual process for determining property value.

That said, there are several practices that you can use to set a listing price no matter what is happening in the Canadian housing market. Here are our top picks.

  1. Assess the Property Details

This is step number one because it should be on your list regardless of market conditions. You need to understand the property details. For instance, what year was the home built? What data is included in the Land Registry?

In order to start thinking about your listing price, you need to know the answers to these questions and more.

  1. Get an AVM

You may have considered getting an appraisal done — this can be a great idea. But have you thought about an automated valuation model (AVM) report as well?

An AVM report can confirm home value, ownership, and other details quickly and efficiently. It can estimate property value by comparing and analyzing property characteristics against public record data.  It doesn’t replace an appraisal, but it is a good companion to one.

While an AVM can’t review interior and exterior property conditions, some include street view imagery that can help identify issues with exterior conditions, such as property boundary discrepancies. It’s great to leverage automation and historical data analysis to generate the latest information on pricing and ownership and create a big picture report.

  1. Consider the MPAC Assessment

MPAC is the largest assessment jurisdiction in North America. It determines revenue requirements, municipal tax rates, and property tax collection for the Government of Ontario.

An MPAC assessment isn’t always the same as a property appraisal, and often listing prices are different from MPAC’s valuation. That said, it is still valuable information that can be used in your determination.

  1. View the Sales History

Along with the property details, you will also want to consider the sales history. While today’s market may be very different from the last time this house sold (particularly if it is an older home), that data is still important to review.

  1. Look Up Comparable Sales

One of the best ways to determine home value is to see how comparable properties are selling. You can get a real-time view of what similar houses have sold for and use that to set your listing price.

You can also narrow your search by neighbourhood to specifically understand the area where you are selling. Certain regions will be more desirable based on factors like school proximity, parks, shopping areas, and the like. This will stay in style even with a market shift.

  1. Use a House Price Index

The Teranet-National Bank House Price Index is released every month with up-to-date information on house prices across Canada. This digs into 11 different markets and the house price trends those regions are experiencing.

This is important for you to know when making your assessment.

  1. Examine Market Insights

In a shifting real estate market, you want to stay on top of the latest real estate trends. For instance, if you know that condos are some of the most popular dwelling types for millennials, and you are trying to set a listing price for a condo in an area that appeals to millennials, that will help make your decision.

The Teranet Market Insights Report is released regularly and contains data that you can use for your property valuation needs.

While it may be simpler to set listing prices during non-turbulent housing market conditions, it’s still possible to do so in more uncertain times. Be sure to do your due diligence and assess information from multiple sources. Trends can change so fast that you need to stay on top of the data.

Luckily, GeoWarehouse makes it easy to stay informed up-to-the-minute. Our property reports take data from the Province of Ontario Land Registration Information System (POLARIS), so you can trust the reports you receive are accurate and timely. They are also available almost instantly, so you can make a decision with the latest figures.

Learn all about our GeoWarehouse reports today. Call 1-866-237-5937 or visit www.geowarehouse.ca.

Want more information on determining a listing price? Download our free eBook, Digital Property Evaluation in 1-2-3! Get your copy here: http://www2.geowarehouse.ca/property-evaluation-general/.

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April 9, 2018

At the best of times, generating a property value can be challenging depending on the sales comps available. Often, your clients’ expectations can be out of alignment and they have a deep emotional attachment to their home. But as a real estate sales professional, there are certain factors you need to consider when determining property value. Are you valuing it too low and could get more money for the listing? Or too high and it won’t sell?

In a good housing market, these questions might be answered with time and experience, especially if you’ve been selling in a particular neighbourhood for many years and have a feel for the local real estate.

However, in a turbulent housing market, such as the one many experts agree Canada is currently experiencing, even the highest level of experience can make generating an appropriate list value nearly impossible.

Particularly if you are selling in a more volatile housing market, such as the Toronto real estate market, generating a property value is a difficult exercise. New mortgage rules, increasing interest rates, and the foreign buyers’ tax are just some of the new regulations that have been introduced in the past two years, which have shifted the market. And there could be more coming.

So, how can you cope? How can you adapt to an ever-shifting market and generate list values that are going to sell and earn you a profit?

The easiest, most accurate, and most reliable way is using technology.

Tools, such as GeoWarehouse’s Property Details Report, can provide an unbiased look at a property’s value. It can compile historic and current data to give you the very best overview. It contains valuable information about a property, including the Land Registry information, MPAC assessment data, property ownership information, sales history data, images of the property and more. This report can be used when determining a property’s market value and because it is completely customizable, it is a fantastic sales and research tool.

Another tool that can be of assistance when generating a property’s list value is GeoWarehouse’s Comparable Sales Report. This enables you to search for comparable sales in a particular area. You can perform a property search by radius, sales time-frame and price range. This report is an essential tool in your tool kit because it places the information that you need at your fingertips.

Generating a property value doesn’t have to be an exercise in futility. You can take out the guesswork with reliable, complete, and accurate tools, such as the GeoWarehouse reports. The information contained within can help you navigate even the most turbulent of real estate markets.

For more information on the Property Details Report and the Comparable Sales Report, or to register for GeoWarehouse, visit www.geowarehouse.ca.

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May 8, 2017

You’re in a competitive industry; you know it and we know it. You have to stretch every marketing dollar the furthest possible distance and are often likely looking for new and innovative ways to land new clients. Getting your foot in the door can be tricky because you are probably not the first real estate sales professional that has come a-knocking.

Whether you are knocking on doors, promoting ads on social media, or sending out email and snail mail campaigns, what does every seller want to know? The value of their home, making this information the lowest hanging fruit in terms of getting a prospect interested.

The last thing you want to do is have your fish on the line but then be forced to put your rod down and go away to do some research. You want to get the prospect the information they need – the quicker the better. This is where your tools come into play.

Here are some tips for quickly dazzling your prospect and converting them from a lead to becoming your newest client:

Mobile matters. Especially when door-knocking, the more you can do at the door, the more likely you are to land your client. Having a tablet and access to a tool that can enable you to quickly generate this data on the spot will expedite the conversation, hopefully leading to a new listing.

Make the most out of your snail mail. Yes, you can send your client a standard 4×6 inch full colour, glossy printed card with your photo, tagline and value proposition – but isn’t that what everyone does? What about spending a little bit of time researching a property and sharing some information, such as what homes in the area are selling for? A little effort goes a long way and this shows your prospect that you are ahead of the pack.

Make the most of responding to email and ad inquiries. Along the same lines as making the most of snail mail, that the first contact you make after a prospect has reached out to you is critical. Prospects who send you an email or message through an ad campaign are likely accustomed to communicating electronically. If they are in research mode, you are likely not the only real estate sales professional that they have reached out to. While the other person may respond with an email asking for a time to have a phone call or with some basic information, you can shine by leveraging a GeoWarehouse property report to show your client that the time is right to sell and you are the best representative for them!

It is tough out there and we know you’re busy, but the extra steps that you take to show your client that you are the expert will lead to more converted leads and a stronger bottom line in the end.

The tools available through the NEW GeoWarehouse make you the property expert. Take advantage. Find out more by visiting www.geowarehouse.ca or calling 1-416-360-7542.

 

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May 16, 2016

geo2You worked hard to convince the client that listing with you is the way to go, and no all that’s left to do is prepare the listing agreement and determine a sale price. Until… your client tells you that they think their home is worth far more than it is.

This happens all the time. There are so many reasons that clients think that their homes are worth far more than they are:

  • What their neighbours tell them – the person across the street listed for…
  • What contractors tell them – I did some improvements to the home…
  • Too much TV –home renovation television convinced them a new coat of paint added another $25k on their home’s value

This a delicate conversation because a home is the biggest investment most people will make and telling them that it is not worth what they think could result in them wanting to work with a real estate sales professional who agrees with them.

  1. The best way to have this conversation with a client is to be well researched before the conversation even happens. Look at the sales history on the home, run neighbourhood comps but select some individual comps that are indisputably similar to the property in question.
  1. When you go to speak with the client put on your listening ears. Your client will be more likely to accept what you have to tell them if you have heard them out completely – even if you don’t agree with them.
  1. Present the evidence – don’t just tell them you have performed research and believe a good list price is $___. No. Sit down with your client and show them your comps and how you derived the value.

Make sure they understand the cons of listing too high:

  • People may not even come to see the home because their real estate sales professional may tell them it is overpriced and not worth looking at
  • Being on the market too long without selling can actually harm the property’s value
  • If you agree to a higher price they may have trouble getting financed

If they still insist, after leveraging your tools, that the property is worth more all that’s left to do is suggest that they have an appraisal.

Dealing with clients who think that their homes are worth far more than they are is a challenging problem that you face all the time. This is why it is so important to be informed and have access to the best technology to do your homework.

Use GeoWarehouse to derive accurate value estimates to help convince unrealistic sellers. Find out more at www.geowarehouse.ca.

 

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