What is my Comox Valley home for sale worth? This is a very common question asked by home sellers and potential sellers of Comox Valley real estate. Fairway homes for sale in Crown Isle are at the top end of the scale. Home buyers often ask the same question “How much is this home worth?”. To answer these questions let’s take a look at worth, value, and price.
According to the dictionary worth is the quality of something that renders it desirable, useful or valuable. Something may have worth to someone because they have an emotional attachment to it – such as a family heirloom. To someone else the same thing may not have any worth. Something may have worth to someone because it fulfills a need for them – such as an old car used for basic transportation. Something may have worth to someone because it represents monetary value to them – such as an investment that they have acquired. For example, if I have a Comox home that is listed for sale that has been in my family for generations, it may mean more to me than a potential buyer who does not have any emotional attachment to it.
The value of something is often expressed objectively and subjectively. The objective view is that there is value in the object or commodity merely because it exists. The subjective view is that value is in the eye of the beholder, not merely in the object itself. While something may have emotional or other value to someone, value is often expressed in monetary terms, or price.
Price relates to the actual number of dollars that the sale of an object or commodity like a Comox Valley home is expected to bring (asking price) or actually brings (selling price) when it is sold.
All Comox Valley real estate transactions involve buyers and sellers. Sellers often have emotional attachment to their homes in addition to whatever they have invested in their homes (purchase price plus the cost of renovations). Sellers, as home owners will often have some value (expressed in terms of a price) in mind when they go to sell their home. Unfortunately, unless they are knowledgeable of current real estate market conditions and how the market is currently affecting the type of home that they own in their local neighborhood, they may not have a realistic appreciation of the current market value of their Comox Valley home.
According to the Sauder School of Business, market value is defined as: At any given time, the market value of an interest in land is the price it might reasonably be expected to realize when sold by a willing seller to a willing buyer after adequate time and exposure to the market. The important things to note are that market value is related to a certain point in time, the price which might reasonably be expected, dependent on a willing seller and buyer, and dependent on adequate time and exposure to the market.
There are a number of factors that will have a bearing on the price that the sale of a specific Comox Valley home will bring. Location, features, condition, and cleanliness are but a few. Having an understanding of current buyer profiles (Where are buyers coming from and what are they looking for?) and current market conditions (supply and demand, list to sell ratios, time on market, etc.) for the area within which you live are also important. A Courtenay high end featured home for sale in Courtenay East may be worth more than the same home in Courtenay West merely because of the location.
When all external factors are properly considered, the asking price set by sellers is important. This price should be based on current market conditions and it may be influenced by other things such as the motivation of the seller. Setting the price either too high or two low will generally not result in the most favorable results for the seller. For example, having a home priced too high for the market may result in no showings but no offers, or worse, no showings.
The bottom line is that before answering either of the two questions posed at the start of this blog, one must understand the conditions in the local real estate market, and then be able to apply what the market is saying in order to determine the market value of any specific home. The level of effort and attention to detail applied to answer these questions may vary according to the real estate professional that you engage to answer them. When you are provided a market value for your home, ask the person to explain the process used to come up with the value so that you are better informed, and more confident with the answer provided. If you need a second opinion contact Brett Cairns of RE/MAX Ocean Pacific Realty.