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What is Market Evaluation?

A Re/MAX agent is the best person to provide a market evaluation for local properties. A market evaluation analyses the current real estate market and the specific property in question. Market evaluations are done to provide a value of a particular property usually for the reason of buying or selling the property in question. Market evaluations use comparables with a specific area in mind over a certain period of time and other property factors that help narrow down subjects to compare to.

Real Estate Agent Explains Market Evaluations

Realtors often do market evaluations for their clients or potential clients as a proposal. This helps them determine the value of their clients' home or a home that they are looking to buy into. Home buyers will have the opportunity to compare potential properties so they can understand what pricing to place on their home for sale or for a home they wish to purchase.

RE/MAX Realtors use market evaluations to take into account the many different factors that entice individuals to buy or sell their property. Things like similar location, age, size and the square footage are used for determining value. Other factors can be amenities, specific location influences like a ravine or any renovations or upgrades that were performed on the property.

Sales data is usually limited to a period in the past, on average 60-90 days, that way market fluctuations can be taken out of the equation when comparing prices. Adjustments are then made to the prices to help make properties more comparable to the subject property. One house may contain a garage and another not, so $10,000 would be deducted or added to the pricing.

It should be noted that no market evaluation can be perfectly accurate as there are too many factors to consider - personal preference, financial situations, emotional attachments, market fluctuations or even the weather.

Why Does It Matter?

There are many factors that create influence for whether or not a home is purchased or sold and proper pricing is what makes that possible. When you over price a property, you turn away prospective buyers and if you under price a property, you'll miss out on financial benefits. Without these evaluations, it would be impossible to truly price the property at the right value. These market evaluations provide buyers and sellers alike a starting point so they can make an informed decision when purchasing or selling real estate properties.

I do market evaluations for the Greater Toronto Area real estate because I work locally within the cities of Ontario and if you need a real estate evaluation because you are interested in selling your property, please give me a call.