Three Things You Need to Know about A Regina Home Evaluation

It’s important to remember that pricing a property for the real estate market is not a perfect science, there are many variables that come into play and a buyer’s perception of the value of the home is one of them and that is not something a real estate professional can accurately adjust a dollar amount for.

Here are three major points to keep in mind when you receive your Regina Home Evaluation:

1. Differing Opinions 

If you were to receive a home evaluation from three different Regina Realtors® you might find that the suggested price varies. This is because as professionals, we may have different opinions on the value of certain things in your property. An agent might make a $10,000 downward adjustment for required cosmetic upgrades to the property whereas another agent might only make a $4,000 downward adjustment for the same required upgrades. The property is the same, but the agent’s opinion of value can vary, which is one reason you may come out with different values from different professionals. If this is the case for you, carefully study the documentation provided to support each of the prices and consider which you think is the most reasonable. 

Pro Tip: the highest price is not always the right price. 

2. Timing 

The time that you receive the Regina home evaluation is also important and plays a role in successfully pricing the home for current market conditions. If you have a home evaluation done in January, market prices may have shifted slightly up or down if you are looking at putting the home on the market 6 months later. The comparable sales and active listing will certainly have changed in a 6 month time period and so your price would need to be updated to ensure it is still in line with current market values. 

Pro Tip: An appraisal or home evaluation you had done four years ago has no weight in the current market. 

3. Buyer Perception of Defects or Improvements

This can be a tricky one to explain, simply because everyone’s opinion of the amount of time, effort & material can vary when it comes to repairing a defect in a property or considering the increased market value of a home with a certain upgrade. 

• Example: Take a 1956 bungalow in south Regina with a wall that needs to be braced. The cost for the bracing, permit and demo of the wall is quoted at approx. $5,000. This doesn’t factor in the time, effort, inconvenience or the cost to rebuild the wall for the buyer. Is the value of the home only $5,000 less because that is the quoted cost of the repair or is it more because of the time and effort the buyer has to put into the property to fix it? There is no way to calculate this. 
   
• Another example: A home owner spent $45,000 improving their backyard landscaping by adding a stamped concrete patio, veranda and professional landscaping. The property is a 1,400 sq ft two story, similar to five other 1,400 sq ft two stories that have sold on the same block in the last 6 months. The subject property is identical to the other properties aside from the extra $45,000 spent on the back yard. Does the subject properties value increase by $45,000 due to these improvements? Its seriously unlikely. You will see some return on this investment, but not 100%. 

Sellers should be wary of the amount they spend in certain improvements and should consider the buyer's perceived market value when it comes to defects in the home as well. A Regina home evaluation cannot provide all the answers, but a strong Regina Realtor® can provide the guidance a person would need to navigate these concerns. A seller should also be prepared to take a good look at the data the real estate agent provides to the support the price they suggest. 

If you would like a free Regina home evaluation, I would be pleased to provide one. You can reach out for more information at 306-552-7047 or fill out my online contact form.