The recent decision by the Supreme Court of Canada to make the sale price of homes public has stirred feelings of glee and annoyance. My view is, “What’s the big deal?!” I think it’s good for consumers to have access to this information. But!, Yes, there is a “But!” If you don’t understand why a house sold for the price it sold for, these sold prices really don’t mean a lot, except that they create a false sense of knowledge.
Here’s an example: A house sold down the street from you for $1 million. Your house is the same build. Or is it? Well, both are a 3 bedroom, 2 storey freehold home. So, your house must be worth $1 million! Right? Well, maybe not. Your basement isn’t finished, and you only have 2 bathrooms – not 3 bathrooms. The home that just sold had the kitchen renovated and has a new addition on the back of the house. Oh, and you only have street parking and the sold house has 2 parking spots. Now it’s time to educate yourself about what your home is really worth. What is a bathroom worth? What are 2 parking spaces worth? What is an addition worth? What is a finished basement worth? These are the things you have to take into account to correctly calculate the value of your properties worth on the market.
Let’s talk about the value of parking spaces. Parking spaces in the downtown core can range from $25,000 to over $70,000. It all depends on the neighbourhood you live in. Having this type of experience and knowledge helps pin points your homes value on todays market.
There’s more to selling a home than just the sold price. A good Realtor will always add value, whether you are buying or selling. Make no mistake: a good Realtor will save you money and will help you make money! And, the best members of our trade take the stress out of making a really important decision in life! Now, that is a big deal!