case in most provinces. However, market shifts can and do happen. A variable, for instance, like a major company entering or moving from the area will tip the scale toward homeowners to make a swift market or toward buyers to make a slow market. T hetypical selling time in a swift market might be 30 days or less, while that of a slow market may be up to nine months. Typically, any number below six months is considered a “seller’s" market.
EXAMPLE OF DIFFERING HOME VALUATIONS
A buyer is interested in a home listed at $425,000. The online valuation determines the house is worth $450,000. Based on that estimate, the buyer offers the asking price. When a professional appraisal comes in at $400,000, and the existing tax records assess the home at $350,000, the buyer wonders why the values are so different and whether he overpaid. The house was listed at $425,000 because at that price, the home would sell in a reasonable amount of time. Why would the appraised value not be whatever a buyer was willing to pay? T he fact that they paid $425,000 does not mean that is the true value of the home. Certain factors may weigh in — undesirable businesses located near the property, for example. Online valuations can’t take into consideration the condition of the property or the qualities of the neighbourhood. Since an assessed home value is for taxing purposes only, it can be much more or much less than the market value. Ideally, they should be the same, but usually they are not; it is based on a percentage of the appraised value determined by a professional. From legal descriptions to onsite inspections to comparable home-selling prices, the assessor will take all these things into consideration when appraising a home. Location near industry, high traffic, or potential development will also affect the
11
Powered by FlippingBook