If you’re planning to sell your property, you’re probably trying to determine what price you should sell for. One of the first steps is having an appraisal or valuation done on your house. In this post we’ll discuss “Appraisals and their impact on the selling price of a house in Toronto?”
When you’re selling your house, you’ll be working with a lot of numbers!
- You have the asking price – the price you would like to sell your house for
- You have the appraisal or valuation – the price that a real estate professional (agent or appraiser) thinks the property is worth
- You have the sale price – the amount that someone is willing to pay for your house.
Can Appraisals Affect The Sale Price Of A Property?
An appraisal or valuation should play a role in determining the price you list your house for. However, it probably will not affect the ultimate price you sell for. Let’s break down why…
An appraisal is an estimate of value, an educated one of course! When you have an appraiser or real estate agent come to value your house, they will determine an estimated value based on the sale prices of comparable houses in your area (“comparables”). They’ll take into account various factors when selecting the “comparables”. These include number of bedrooms and bathrooms, square footage of the house, the lot size and whether there is a finished basement. The real estate professional will use the factors to select the most similar sold properties in the area.
The appraisal will bring to your attention various things you should consider. It will highlight what people are willing to pay for a house in your area and what aspects of a house they consider to be valuable. Perhaps people in your area are looking for a 3 bedroom house or desire a finished basement.
Based on the findings of the appraisal, you now have valuable information to help you determine an asking price by knowing what people are willing to pay in your area. For example, if the “comparables” in the appraisal indicated that majority of houses in the area have had an unfinished basement, but your basement is finished, you may decide to list at a higher price then those houses. On the other hand if most houses were newly renovated while your house needs some work, you may list at a relatively lower price.
The Bottom Line
An appraisal is an educated estimate and your ultimate sale price may not always match. At the end of the day the appraisal gives you a general sense of what your house is worth but the sale price will always be determined by what someone is willing to pay for your house at the point in time that you are selling.
Are You Looking to Sell Your Toronto House Fast?
You may take the traditional route and start with an appraisal and then list with a realtor. But there is an alternative. You don’t necessarily have to bother with an appraisal or cleaning your house and getting repairs done in order to have countless strangers in and out of your house, with no certainty that they are in fact interested or will give you an offer. You can save yourself all the time, work and headache and even the realtor fees. You can get a fair cash offer from us. We’ll buy your house fast and hassle free. We buy houses in as-is condition. Just pick up the phone and give us a call at 647-490-1334 or click here now and enter your information into the form.