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When the time comes to sell your Montreal home, you may be unsure of its value. If you REALLY want to know how much it’s worth, you can pay to have it appraised. Your real estate agent should be able to do a detailed comparative market analysis and inform you about what’s going on in your neighborhood. Knowing the differences between these two real estate values can help you decide on the ideal price at which to advertise your property! 

What is the difference between market value and appraised value in Montréal?

Market value, definition:

Market value is the most plausible price at which a property could sell in an open and competitive market under all the conditions necessary for a fair sale, where buyer and seller act prudently and with full knowledge of the facts, and no inappropriate stimulus affects the selling price.

Roughly speaking, this is the amount of money you could expect to receive after a few months on the real estate market, if all goes well and potential buyers regularly visit your property for sale.

Appraised value, definition:

The assessed value is the cash value of your property, from which your taxes are calculated. A property appraisal determines the value of a home by taking into account the value of similar properties, as well as inspection records.

The concept of assessed value is not easy to grasp. Although the city can assess the value of your property for tax purposes, this value is not representative of changes in the real estate market.

Estimated value:

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But wait, there are other values. The estimated value of your property may differ from the two values described above. An appraisal can be carried out by a certified professional who methodically observes all aspects of a property. Although this professional can value your property perfectly, it’s still only one person’s opinion, whereas other methods are based on mathematical calculations and the history of your home and the market.

What the Net has to say:

All the major real estate sites have their own formula for calculating the value of a property. This value is a starting point based on information obtained from the real estate market and information provided by site users. This value does not accurately reflect the value of your home. It may give you a good idea, but measuring the current state of the real estate market is not that simple. Differences between this appraisal and the actual value of a property are often reported in the $20,000s, or even $50,000s!

What this means for salespeople like you:

Do your homework! Look up all the figures mentioned above and make sure you understand the real estate vocabulary (like the term fair market value, for example). Make sure you work with a real professional who can help you determine the market value of your property.

Setting the right selling price is extremely important. You don’t want to advertise your property at too high a price, then have to make repeated price cuts, since such cuts could put off potential buyers. Your price history is public, and repeated price drops could lead potential buyers to believe that there’s something wrong with your property. For obvious reasons, you wouldn’t want to advertise your home too cheaply either. To get a good return, you have to be patient and team up with a real Montreal professional.

If you would like to learn more about the best ways to sell a home in Montreal, send a message to our team by clicking here or call us today! 514-320-1000