The trickiest part of buying or selling real estate is calculating “fair market value”- a term used to describe what a property is worth based on its characteristics (property type, square footage, neighborhood), features (garage, balconies, amenities, etc) and the performance of comparable listings in the same geographic area. Fair market value is used when drafting an offer to purchase, scanning the market for undervalued investment opportunities, and figuring out what your asking price should be before listing a property for sale.
TL;DR: Montreal buyers, sellers and investors can now estimate current market value online for free, without the help of a real estate broker. The calculation is based on historical Centris data as well as unique property features and characteristics. Get started with an instant property evaluation here.
There are several real estate websites in other markets (Zillow, Trulia, Realtor.com) that offer free and online tools to estimate value, using both public and user-submitted data points. However, historical sales data has thus far been unavailable to the general public in Quebec, making the home evaluation process more time-consuming and arduous than it should be. To estimate market value in Quebec, sellers and buyers have relied on the help of a real estate broker to access back-end Centris data. The broker must then apply a manual calculation to each property, using their own custom formula, since the Quebec MLS does not provide a standardized or automated way of aggregating data for evaluations.
Montreal now has its first free, online and instant tool to estimate current market value, based on the following data points:
- Postal code
- Living area (square footage)
- Bedrooms and bathrooms
- Property Type
- Garage number
- Historical (12 month) sales activity for comparable properties
Step 1: Enter your property characteristics
Step 2: Access your instant property evaluation report
The instant evaluation includes:
- Estimated property value, with and without a garage, based on 12-month Centris data
- Estimated property value, with and without a garage, based on 24-month Centris data
- Estimated property value, with and without a garage, based on current Centris listings
- Estimated selling time
- Average price-per-square-foot appreciation over time (2010-2018)
- Average sold price appreciation over time (2010-2018)
Other factors to consider
Online property evaluations are a handy way of making quick, initial calculations about market value. You can use them to compare average prices across various neighborhoods, or to receive an estimate of how much a property might be worth before putting in an offer, or listing a property for sale.
However it must be noted that real estate brokers take into consideration other factors which may affect property value, and which cannot be included in an online evaluation. Among other details, an experienced real estate broker will be able to factor in questions such as:
- Has the property been well maintained?
- Is the condo association security fund well managed?
- Has the condo project been involved in resource-draining legal cases?
- Does the building have additional features which may raise or lower the property value, such as rooftop terraces, panoramic views, elevator, etc.
- Has the previous owner invested in renovations or upgraded features within the property?
- Does the seller’s declaration include prior damages to the building, such as flooding, mold, or pest infestations?
- What are some of the current or projected urban plans around the building?
It is therefore always recommended to consult with a real estate broker or analyst before making a final decision regarding property value.
This article, Montreal Has a New Online Tool To Instantly Calculate Real Estate Property Value, appeared first on Shupilov News.