What is this home worth? This is one of the questions I get asked the most. There are a few different ways to look at value; there is the home's assessed value, market value, value to the Seller, and the value to the Buyer.
Assessed Value - The home's assessed value is determined by BC Assessment and is used to determine the amount of property taxes you will pay every year. I often get asked why is a home priced above or below the assessed value. There are a few factors - the assessed value loosely follows the market, it's always somewhat far behind the market, and it is only updated once a year. For example, my 2023 assessed value was determined on July 1, 2022. The market is quite different now than it was then and a lower assessed value can actually be a good thing - less taxes!
Market Value - The home's market value is determined by a Comparative Market Analysis (CMA), which is typically done by a local real estate agent. This takes many factors into account such as the current market condition, recent comparables (active, pending, or sold listings for comparables properties), the condition of the home, zoning allowances, and more. Regardless of the price the Seller paid originally or the assessed value, the market value is determined by market forces and is the most accurate and objective value of a home.
Value to the Seller - This is what the Seller feels the home is worth, which may be subjective. Seller's usually have an emotional attachment to the home and had purchased it because the home suited their wants and needs. When listing the home, Seller's determine the market value with their realtor then strategize a list price to attract the highest amount of Buyer's while achieving the highest purchase price possible. The list price could be a combination of the value to the Seller and market value. The value to the Seller is also likely to be a factor during negotations.
Value to the Buyer - As a Buyer, the value of a home is what the home is worth to YOU. It's the number you would feel comfortable paying for the home with absolutely no Buyer's remorse. As a Buyer making an offer, you will have likely toured comparable properties and we will complete a CMA so you can determine a fair price to offer. Just because you make a fair offer, doesn't mean the Seller will agree to it - at this point, you'll have to decide what the home is worth to you and how badly you want to purchase it!
So what is this home worth? The answer is, it depends who you ask!