I was joined by David Dawood CRA, a residential appraiser and owner of Abacus Residential Appraisals, Inc. to discuss how to price a property. David has been appraising houses in Canada for over 10 years – he knows his stuff. His passion for real estate is evident. He has a lot of valuable info to share!
This is a condensed video of a much longer conversation, showing you what to look for when coming up with the listing price for your market. Please refer to the write-up below for more information.
Check Out The Video
Know What You Are Selling
When coming up with a listing price for your property, you need to know exactly what you are selling, inside and out, and look at it through an objective lens. Although you may live in and love your home, it is crucial to record all the good and bad attributes of your property.
First thing you should do is download a free appraisal inspection application to your phone or tablet. Alamode’s Total for Mobile is a good application used by some appraisers that will allow you to take notes and pictures and even sketch your home within the app. Once you’ve downloaded the app, you’re ready to inspect.
Start at the front entrance and work your way through the house, room by room. You’ll want to to through twice to make sure nothing was missed. When inspecting, you need to examine and record everything, good and bad.
What kind of house is it – bungalow, split entry, Cape Cod? How high are the ceilings? What material are the walls made of – wood, ICF, drywall, plaster? What kind of flooring does your house have – hardwood, laminate, ceramic? What is the trim like – MDF, hardwood, softwood? What kind of front door is there? What kind of windows, heat, electrical, plumbing? How old is the roof? Has an energy audit been conducted? In the kitchen, what are the countertop made of, and what kind of cupboards are there? Is there any deferred maintenance? Examine all utilities – how old is the furnace, oil tank, and hot water tank? What type of electrical box is there and what is the amperage?
Look at all the pertinent details listed within the app and make note of everything. All of these details will speak to the condition and quality of the home. When assessing the quality and condition of a home, appraisers draw on years of experience during which they’ve potentially inspected thousands of homes. Unfortunately, most homeowners do not have the benefit of this experience, which is why they need to be as objective as possible.
The size of your home is one of the first things consumers look at. Measurements must be accurate. You will be able to sketch your home directly in Alamode’s Total for Mobile app.
Once the home is measured, exterior improvements need to be measured accurately. These include the deck, garage, pergola, dock, pool, shed, etc.
Comparing Your Home to the Market
The main contributors to value for single family homes are size, condition, and location. Once you have thoroughly inspected your home and nailed down these three components, you are ready to compare what you are selling to what is active on the market, and what has sold within the last 90 to 120 days.
Pricing your property is a crucial first step in the listing process.
Know what you are selling. Do an inspection of your property the same way a residential appraiser would, to find out what your property has to offer.
Make notes on everything to be sure you have all the details when formulating your listing price.
Follow David’s advice, showing you what to look for when coming up with the listing price for your market.