What is an Evaluation?

2009/04/29 Originally published in the Vernon Morning Star.

Evaluations are the process by which Realtors© arrive at a professional opinion of the value of a property. For all intents and purposes it is a very similar method to that which certified appraisers use.

The subject property is investigated. The size of the dwelling and that of the property are established. All of the assets and positive points of the property are noted. All the negative factors are calculated. Once we fully understand what the subject property is all about, we are then able to seek our comparable sold data. We (hopefully) find three or more properties that are reasonably similar to the subject property and that have sold in the previous 90 day period. We select that short a time period in an attempt to establish truly current market value. If there are no such sales, we use mathematical data to adjust older sales to the current time period. There is no question that concept has the potential to be a less accurate calculation. On the current marketplace, values are still inching downward. I find it hard to accept that all types of properties are changing values at exactly the same rate. That's why the most current sold data is clearly the most meaningful.

All other variables like home size, condition, extra features, etc. are also considered.

The rest of the evaluation process is assessing the current competition. On a competitive market, such as the one we are currently experiencing, there are many similar properties also being offered for sale. In order to competently advise a potential seller of a property, the Realtor's evaluation must also include an assessment of the properties currently for sale. After all, if you want to sell on a very competitive market, you need to offer the best deal. There is nothing accomplished by being similarly priced to overpriced listings.
All this data and all the competitive factors are bundled and processed by the Realtor©. Our evaluations usually state a range of values and a suggested asking price. The idea is to make the asking price typical in the current sales market and be amongst the best offerings when compared to other properties offered for sale.

Choose a Realtor© who will give this question the time and care it deserves. After all, it's your future at hand and you want to be fully and accurately informed.

Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email her or call 503-3755.

RE/MAX Vernon | 250.503.3755 | Toll free 1.888.503.3755 | 5603 - 27 ST | Vernon | BC | V1T 8Z5 | Canada

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What is an Evaluation?