A realtor values your home by comparing it to similar homes that sold recently nearby, then adjusting for the differences. This is called a Comparative Market Analysis, or CMA.
Step 1: Find the right comparables
The best comparables are homes in your neighbourhood, of a similar style and size, that sold in the last few months. A bungalow is compared to bungalows. A condo is compared to units in the same building or ones like it.
Step 2: Adjust for the differences
No two homes are the same. If a comparable has a finished basement and yours does not, its sale price is adjusted down to reflect that. If your home has a garage and the comparable does not, its price is adjusted up. The common adjustments are:
Square footage
Bedrooms and bathrooms
Garage and parking
Finished basement
Lot size and location on the street
Condition and updates
Step 3: Look at the competition
Sold homes show what buyers have paid. Active listings show what your home will be competing against today. A good CMA looks at both.
Why online estimates miss
Automated estimates cannot see inside your home. They do not know the kitchen was renovated, the roof is new, or the house backs onto a busy road. They can be a starting point, but they are not a price.
What you should expect from us
When LoveThatHouse prepares a CMA, you see the comparables, the adjustments and the reasoning. We give you our honest opinion of value, even when it is not the number you were hoping for. The decision on list price is always yours.
Want to know what your home is worth?
Home evaluations are free, with no obligation to list. Request one on our website, or call Chris at 226-338-6840 or Dave at 519-501-9540.