Go Back   BuildingHomes.ca - Building your community! > General > Real Estate Questions

Real Estate Questions Planning on selling your home? Looking to buy a resale? Post your comments and questions here.


Reply
 
Thread Tools Display Modes
  #1  
Old 2011-11-15, 11:34 PM
S and H S and H is offline
Senior Member
Regular User
 
Join Date: Apr 2008
Posts: 366
Default Bank appraisal value and asking price - for sale by owner.

We are going to list our place after the New Year. We will try to sell on our own first before going with an agent, if necessary. So far, we have not brought in any agent to do a market evaluation but will do so shortly.

I remember getting my house appraised this summer when we applied for a HELOC. I know the bank typically put in a pretty conservative value when it comes to appraisals and the number is unbiased i.e. the appraiser has no emotional attachment to the house.

My question to you folks is: Is the appraised value a good number to go by, in terms of setting our expectations and knowing what our house is worth? I know appraised value rarely equals market value but I thought it would provide a good starting point for us to know what asking price ballpark we should set.

Your thoughts?
Reply With Quote
  #2  
Old 2011-11-16, 06:45 AM
good2know's Avatar
good2know good2know is offline
Senior Member
Regular User
 
Join Date: Sep 2010
Location: Ottawa
Posts: 5,680
Default

Its a good reference point only in that market value should be higher - 15% or more. You also have the mpac assessment fwiw.

Best bet is 3 agents in to do a market assessment for you. Get them to also show you comparables - what similar houses in your are are selling for, and days on the market.
Reply With Quote
  #3  
Old 2011-11-16, 09:12 AM
gerapau's Avatar
gerapau gerapau is offline
Senior Member
Regular User
 
Join Date: Jun 2009
Location: Ottawa
Posts: 1,769
Default

Yep, the bank appraisals are usually very low. Last house we owned we had a bank appraisal done and it came in at $330K. We sold the home 3 months later for $390K.

And don't bother even looking at the Mpac assessment. First off, it is supposed to be what your home would have been worth in 2008, not what it is worth today (big difference). Second, the mpac assessments rarely take any upgrades into consideration (except for a few specific ones like A/C).
Reply With Quote
  #4  
Old 2011-11-16, 11:17 PM
Irene's Avatar
Irene Irene is offline
Senior Member
Regular User
 
Join Date: Mar 2010
Location: Burlington
Posts: 336
Default Property appraisal

This link was posted elsewhere on this site very recently:
http://www.zoocasa.com/en/zoopraisal#

The site allows you to put in very little information about your property and will give you an assessed value instantly.
I tried it on both the house I just sold and the new house and the assessment was dead-on.

Irene

Quote:
Originally Posted by S and H View Post
We are going to list our place after the New Year. We will try to sell on our own first before going with an agent, if necessary. So far, we have not brought in any agent to do a market evaluation but will do so shortly.

I remember getting my house appraised this summer when we applied for a HELOC. I know the bank typically put in a pretty conservative value when it comes to appraisals and the number is unbiased i.e. the appraiser has no emotional attachment to the house.

My question to you folks is: Is the appraised value a good number to go by, in terms of setting our expectations and knowing what our house is worth? I know appraised value rarely equals market value but I thought it would provide a good starting point for us to know what asking price ballpark we should set.

Your thoughts?
Reply With Quote
  #5  
Old 2011-11-17, 10:27 AM
hellokittygirl hellokittygirl is offline
Senior Member
Regular User
 
Join Date: Mar 2010
Location: Aurora
Posts: 122
Default

I would stay away from any web-based tools, MPAC and bank based estimates as they are typically very conservative as most have pointed out.

Your best bet is to contact a local agent that knows you area very well and request for an analysis of homes that have SOLD in your neighbourhood within the last 6 months to one year.
Reply With Quote
  #6  
Old 2011-11-17, 06:51 PM
Irene's Avatar
Irene Irene is offline
Senior Member
Regular User
 
Join Date: Mar 2010
Location: Burlington
Posts: 336
Default

I disagree with hellokitty. The web based tool specifically uses the data of all the sales of like homes in the same area; the same information that an agent would also use, with the big difference that it does not add any bias.
I believe it is always best to use several sets of data, including online tools, sales agents (plural!) and the newspaper ads.

As for a conservative estimate - setting a reasonable (I didn't say cheap!) price is often a good strategy anyways. Overpriced properties often stay on the market for months - and then the owner reduces the price. The resulting worries, stress and constant interruption of your lives by having open houses is not worth it.
Better to list conservative and get a lot of attention for the property quickly and perhaps get multiple offers. Best in a spring market of course.

JMHO
Irene


Quote:
Originally Posted by hellokittygirl View Post
I would stay away from any web-based tools, MPAC and bank based estimates as they are typically very conservative as most have pointed out.

Your best bet is to contact a local agent that knows you area very well and request for an analysis of homes that have SOLD in your neighbourhood within the last 6 months to one year.

Last edited by Irene; 2011-11-17 at 06:54 PM.
Reply With Quote
  #7  
Old 2011-11-17, 11:43 PM
djBern djBern is offline
Senior Member
Regular User
 
Join Date: Jan 2010
Location: Vaughan, Ontario
Posts: 110
Default

We had an appraisal done a couple weeks ago. I put our info through the web site and it was $800 over what the appraiser gave us. However, we have a walkout basement lot which we paid a premium for, and we just had a large deck built, both of which I'm sure the appraiser included in the value but isn't included in the web site appraisal.

So I think good2know is correct in saying it's a good reference point.
Reply With Quote
  #8  
Old 2011-11-18, 12:04 AM
patrob patrob is offline
Senior Member
Regular User
 
Join Date: May 2007
Location: Brampton
Posts: 2,926
Default

Quote:
Originally Posted by Irene View Post
This link was posted elsewhere on this site very recently:
http://www.zoocasa.com/en/zoopraisal#
I tried this tool but the appraisal was way off in our case.
I suppose it might work ok for others in diff. areas.
Reply With Quote
  #9  
Old 2011-11-18, 08:58 AM
gerapau's Avatar
gerapau gerapau is offline
Senior Member
Regular User
 
Join Date: Jun 2009
Location: Ottawa
Posts: 1,769
Default

Quote:
Originally Posted by Irene View Post
I disagree with hellokitty. The web based tool specifically uses the data of all the sales of like homes in the same area; the same information that an agent would also use, with the big difference that it does not add any bias.
It also does not adjust for any major options, lot upgrades, etc.... In our area similar sized homes can vary in price by well over $250K based on options, features, lot upgrades, etc.... An online tool like this does not adjust for any of this where as a realtor would. There is just no way that a tool like this, that only asks the questions that it does, can be reliable. Sure, it can be accurate in some cases (if your home has similar features and upgrades to the average home that has sold recently in your area) but in others it will be way off. In our case it is well over $100k off from what our home is really worth.
Reply With Quote
  #10  
Old 2011-11-18, 10:57 AM
hellokittygirl hellokittygirl is offline
Senior Member
Regular User
 
Join Date: Mar 2010
Location: Aurora
Posts: 122
Default

I guess if you have a "cookie cutter" home then this would suffice but at the end of the day, I would want a trusted local agent to show actual SOLD results in the area and not pie-in-the-sky results.

But as gerapau stated, (and I'm in the same boat) when you have expensive upgrades like a custom wood (not MDF kitchen), lot premium, basically the QUALITY of upgrades then online tools would be doing you an injustice and significantly under value your home.
Reply With Quote
Reply

Bookmarks

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Richcraft Townhouse for sale - South area/ Bank and Hunt Club mtx Ottawa Area Houses For Sale 3 2010-03-17 08:08 PM
Richcraft Townhouse for sale - South area/ Bank and Hunt Club mtx Houses For Sale 0 2010-02-01 02:47 PM
3715 Sq.Ft Home For Sale in Milton By The Owner Rob Houses For Sale 0 2007-09-28 02:12 PM
3715 Sq.ft Mattamy Home For Sale By Owner Rob Milton 0 2007-09-25 04:38 PM
Home for sale by owner (Main/Sinclair) volam Milton 0 2005-11-11 07:20 PM



All times are GMT -4. The time now is 05:21 AM.



Copyright © PHAND Corporation
This document may not be used elsewhere without the expressed written consent of PHAND Corporation.
*** There is no association between this website and any builder. ***

Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2018, vBulletin Solutions, Inc.