Market Value
When you’re getting ready to list your home, your Realtor will often complete a Comparative Market Analysis (or CMA) for you to provide perspective on value and help you arrive at a listing and/or goal sale price.
Sales that are similar to the subject property (ex: 2 bedroom bungalow), within close proximity to the subject property (ex: less than 1 km away) and sold recently or within a similar market (ex: seller’s market vs buyer’s market) will be considerations made when completing a CMA.
A buyer’s agent will exercise a similar practice in helping their buyers arrive at an offer price.
Another consideration to be made from a buyer’s perspective is Value In Use. This is value a specific buyer will place on a property should it include desirable features that they require and will make great use of. Examples include pools, fenced backyards, workshops, 3-car garages, backing onto green space, etc. To some buyers these items may be great features, but they are not direct desired features, as other elements like neighbourhood and square footage will be front runner must-haves.
Value In Use can contribute to a higher offer price from a motivated buyer who is specifically searching for those unique features.