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How To Price Your Home And Deal With Multiple Offers

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Pricing your home to sell is an essential part of budgeting and planning for your next move, and there are several factors that go into the final number. For homeowners it can sometimes be a little difficult to parse the number they’re offered by appraisers and real estate experts, but with a little research and understanding, you can have a better idea of what the market value range for your home truly is. 

Something that’s unique to BC homeowners is the BC assessment, which provides an estimated value for your home. In this blog we are going to to explain a little more about that, and its limitations, as well as providing you with advice on how to understand the true market value for your home, and what to do afterwards should you receive multiple offers.

The Limitations Of The BC Assessment 

The BC Assessment is a province wide government assessment that is used to determine the taxation levels for homeowners. However due to its widespread availability and recognition, it is also often the first port of call for homeowners who want to get an idea of how much their home is worth before deciding to sell or move. 

While this can be useful in a number of ways, it’s also important to always keep in mind that this value can have a very weak correlation when it comes to market value, which may be significantly higher or lower for your property. 

One of the biggest reasons for this, is the broad criteria employed by the BC Assessment. There are very good practical reasons for this, when you consider the sheer number of properties involved, but it does mean that there are a number of things an appraiser will consider that can directly contribute to market value. 

Another limitation of the BC Assessment is that it’s based on the value as of the time of the assessment—and now you’re probably thinking, it was 6 months ago, how much can really have changed? The answer is a lot more than you think! 

Whether it’s the value appeal of your location, trends when it comes to design and style, or even market factors, there are a lot of constantly fluctuating factors that contribute to your property’s market value. 

Finally, the assessment does not involve any physical visits to your property, and this is where an appraiser’s experience and skills come in: the experience of your home, how it feels to be in and around, will be a significant factor in the decision of buyers, and therefore also a direct component of market value. 

The Key Factors That Determine Market Value 

Perhaps more valuable than knowing your specific market value is understanding just what the key factors that determine the value of a home are. This will not only help you understand your home’s position in the market, but also will help you figure out what steps you can take in order to maximize the value of your home. 

Here’s a rundown of some of the key factors an appraiser will consider when deterring the value of a home: 

  • The location of your home, especially when it comes to proximity to schools, transport, amenities, and the popularity of the neighbourhood 

  • The age of the property, in particular newer builds and historical or older buildings, will in all likelihood have higher values 

  • Size and dimensions, not just in terms of the overall size of the lot, but the number of rooms, outdoor areas, and the potential for expansion 

  • Interior design features, there are a number of trendy layouts such as open plan areas, and both style and the quality of appliances can also factor in 

Dealing With Multiple Offers 

Receiving multiple offers on your home is possibly the best case outcome for a seller—but that doesn’t mean it’s a simple or easy one to navigate, and it’s certainly not as easy as simply picking the highest offer! 

That’s why we’re going to delve into a little more detail about some of the issues that come up when you’re navigating multiple offers for your property, as well as some of the best ways you can approach this situation to ensure you get the best possible outcome. 

How To Compare Competing Offers 

While for many the first impulse will be to look at the headline value, it’s not as cut and dry as that. 

In reality, the highest offer may not always be the best offer, and there are a number of smaller details you need to look at when comparing multiple offers:

  • Is the offer non contingent? A contingent offers is one where the offer is dependent on certain conditions being met in order for the buyer to finance their offer. In some cases these contingencies are unrealistic or unlikely to met, meaning the offer itself, no matter how good it seems, is probably too good to be tried! 

  • A significant or even full cash offer can often be more appealing than an equal or even higher value offer with a smaller cash component. This is because a cash offer eliminates the need for lenders and allows you to move forward with greater security and flexibility. 

  • Look for buyers who don’t need to sell their home to finance a move. This is a very important factor if you’re on a schedule of your own, especially if you already have your new property lined up, as you could risk a delay and missing out on the timing that works for you, if a buyer struggles to sell their own property. 

Maintain An Open Line Of Communication 

The biggest key to navigating a situation where you’re balancing multiple offers is to maintain an open line of communication between all parties, as well as conducting things with transparency and honesty. 

If there is enough time, you will often be able to open a dialogue with the interested parties and see if they’re willing to improve on their original offer. It’s also important that you communicate clearly with your realtor, especially when it comes to your expectations and timeline. 

When it comes to making the most of the value of your home, there is no substitute for the input of a skilled and experienced realtor. We have a team of experts here at Madsen Langlois who will be able to offer just that, to find out more about how we can help you, contact us today!

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