What is Fair Market Value of a Home?

Buyers and sellers set the price that homes sell for. The economy (local and global), employment, interest rates, government activities, and supply and demand all have an impact on what buyers are willing to pay and sellers are willing to accept, but it takes a buyer and seller agreeing on a price to make the transaction, and what they agree on becomes part of the trend which determines market value.

Water spills over rocks on Perseverance Creek in Cumberland

Fair market value is somewhat subjective – it depends on what you value. If you want a workshop, then that has value for you, if you don’t, then it really doesn’t add value for you. Once buyers have decided on a geographic location, they typically do comparison shopping and choose the home that best suits their wants and needs, within their budget. Sellers want to position their home’s unique advantages to buyers who appreciate those attributes.

As a Realtor, I have a lot of information and tools available to me that can help to advise you on what fair market value is. There are also choices available to help you (see Home Buying and Home Selling). In addition to this information, I also have historical MLS data, BC Assessment data, market performance reports and other sources that I can draw upon to provide you additional information.


 

The two most important tools to help determine fair market value are a CMA (Comparative Market Value) and PCS (Private Client Service, a personal search engine that provides listing information). A CMA is a report that helps sellers decide what price to list their home for, and helps buyers decide what a fair price to offer is. This is basically determined by looking at what has happened in the market recently. I search for similar listings in the following categories:

  • Currently Active:  These are homes on the market similar to what you are looking for or selling. This shows what is currently available, and for what price. If you are selling, these are the homes you are competing with. If you are buying, these represent your choices.
  • Recently Sold:  These are similar homes to what you are buying or selling that have sold. This is the most reliable data on market value as it shows which homes actually sold and at what price. In other words, the value that a buyer and seller agreed upon.
  • Expired:  Expired listings are usually homes that did not sell, generally because the price was higher than buyers were willing to pay or preferred choices were available.

For a free evaluation of your home please contact me.

Setting up a search on PCS is a great tool as well. As well as seeing the homes you are competing with, you can track price changes of homes, which homes sell and the price they sold for. It is a great way to watch and get to know the market even before you are ready to list your home or to start searching for a new home. See Get PCS to set up a search or contact me to set up a search or get a free home evaluation.

Trent River falls, Comox Valley.


     About Gerry

Information and Interpretation
Selling or buying real estate is a major financial endeavour with many factors to consider. While you have a wealth of information available to you on the internet, interpreting that information is another matter.

This is where I come in. Not only do I research and provide you the information you need, I take it to the next level and analyze and interpret that  information for you. I will tell you what I think, what we do is up to you.


As a client, your Realtor works for you, and this is a principle I hold dear.  I see my job as providing you with information, interpretation, services and guidance, not to push you on a course of action.

Unparalleled Service
I have a simple code, I don't sell, I service. I assume my clients are perfectly able to make their own decision once they have the information they need. I spend my time providing information, guiding people through the process, and making sure all the bases are covered, not in high pressure sales.

Over the years I have received very complementary feedback from clients. See Client Feedback.

Integrity
Integrity, simply defined, is being honest and fair. This is further enhanced by one of a Realtor's prime duties, which is not to put anyone's interest above their clients, including their own.  This a duty I take very seriously. My personal outlook after over 30 years in business, is that whenever I experience high pressure sales I start to question the integrity of the person selling me.  Are they looking after my best interest or theirs?

Gerry Chwelos, REALTOR®

PEMBERTON HOLMES LTD.

Tel: 250-8975465

All images on this website are copyright protected. Most photos provided by Boomer Jerritt.

Copyright © Gerry Chwelos 2017