Property Value

Let's be honest, who doesn't think the family cottage is worth millions! Well, the family cottage may have provided priceless family memories, and hosted occasions that are worth their weight in gold, but… you might be just a little subjective in your opinion.

There are several types of value associated with real estate and they aren't all relevant to the purchase or sale of a property.

Here is a quick overview of how one should consider property value.

First…

Property Value IS NOT;

• How much money you wish to make from the sale
• How much you paid for the property
• How much money you have put into the property
• How much the appraisal report indicates
• The tax assessment value shown on your tax bill
• How much the neighbour got for his property
• How much you need to replace the property or purchase another property

Market value is a true reflection of your property's worth, should you decide to sell your property, or if you are considering a property purchase. Effectively, the market value of a property is the highest price, in terms of money, which the property will bring to a willing seller if exposed for sale on the open market; allowing a reasonable time to locate a willing purchaser, buying with the knowledge of all the uses to which it is adapted and for which it can be legally used, and with neither party acting under necessity, compulsion or peculiar and special circumstances.

Market value should not be confused with market price: the amount paid, or to be paid, for a property in a particular transaction. Market price is an accomplished or historic fact, and tends to closely align with market value in an efficient marketing system involving willing, informed buyers and sellers, given reasonable time periods with no undue influences.

So, we know now that…

Market value IS;

• Based on conditions within the market TODAY
• Includes factors pertaining to property location and property condition
• Based on actual sales in your area of similar properties
• Considers other competing properties currently for sale

The Danger of Confusing Value and Overpricing

When a property is overpriced you are attracting curious lookers, not legitimate buyers. Buyers today are educating themselves on the value of property, and are quick to identify an overpriced property. An overpriced property can communicate your inflexibility and unwillingness to negotiate; it can reduce the number of showings, and can actually help sell other competing properties. Perhaps the worst scenario is that an offer is received on an overpriced property, and an appraisal does not support the price, causing the buyer to lose their mortgage financing. Ultimately, an overpriced property will create frustration for all parties as the property remains on the market with little or no activity for a long period of time.

So, what is my property worth?

If you may be considering the sale or purchase of a Muskoka cottage or waterfront property, we would be pleased to meet with you and provide a short orientation to establishing market value for your particular situation. We are committed to our clients and their full understanding of their property value in today's market or the value of a property they may consider purchasing. We will provide you with a brief overview of the history of the area, the sales activities within a given period, and provide you with solid and concise information on which to base your decision. We believe that an educated client is a happy client, and we strive to ensure you are completely comfortable with your purchase or sale decisions, especially as it pertains to the bottom line.