When a Realtor provides a home valuation it is their opinion of your homes current market value based on recent comparable sales near your property.
In general, this process is relatively similar from Realtor to Realtor. You’ll show the Realtor the property, and then they will research recently sold homes on MLS with a similar layout, location, and quality. What varies from Realtor to Realtor is their opinion is the value of certain aspects of your property. For Example: One realtor may place a higher value on your property because it has a large pie shaped back yard. Another Realtor may argue a larger pie shaped backyard has minimal additional desirability, due to perhaps the demographics for the area, or recent experience in the neighborhood. This is why it is important to always get more than one Realtors opinion on your properties value!
How is a Realtor Home Valuation different than an Appraisal?
Both an appraiser, from an appraisal company, and a Realtor will reviewing similar home sale prices in the area to determine your homes value. The difference is their relation to you. An appraiser always acts from a 3rd party perspective. While a realtor may have ulterior motives with their valuation (earning your business, over promising, etc.). As a result, many banks will request a property appraisal prior to providing financing, even if the property is listed for sale on MLS.
How is a Realtor Home Valuation different from our cities Property Assessment?
The city of Edmonton’s yearly Property Assessment is automatically determined by an algorithm, so it is impossible to know exactly how the city determines your home value. As a result, it is not a very good indicator of your properties value, especially when you consider that the city is not likely considering the qualitative improvements you’ve done to your house.
If you’d like to discuss a home valuation in person, call me!
