Condos are becoming the hottest type of real estate in Toronto. And while there are tons of them popping up in all corners of the city for buyers to snatch up, they're also a hot commodity for selling to unleash and make a sizeable profit.
Just like any other type of real estate for sale, it's critical to come up with the appropriate listing price based on the current market value in your area. In fact, even homeowners who have no intention of selling may be curious about what their properties are worth. Finding the true value of your condo will tell you know how much equity you have in your home.
But coming up with the right listing price for your condo should never be a guessing game. In fact, it's got to be precise in order for your listing to be competitive. So how exactly do you go about coming up with a listing price for your condo that's not so high as to scare buyers off but not so low as to leave money on the table?
Take a Quick Look Online
Realtor.ca has a list of current condos that are up for sale along with their asking prices. Of course, what people may be asking for won't necessarily be what they will get come sale time. It's possible that the amount they've listed for is nowhere near what the current market dictates.
That said, it can still be helpful to look at what is currently listed on the market to see what your competition is like and get a rough idea of what your condo may be worth. The listings that are up on Realtor.ca are represented by professional real estate agents, so most likely the prices accurately reflect the current market. However, the final decision about listing prices ultimately lies with the sellers themselves, despite the advice of their agents.
Look Into Your Property's Records
If you currently own real estate, one of the many expenses that you'll be responsible for paying is property taxes. This pesky expense is mandatory and the amount you pay is based on what the city deems your property to be worth. The higher your property is valued at, the more money you'll be paying in property taxes.
The local government uses a specific formula to devise how much tax should be assessed on all properties, including your condo. However, these are not typically current assessments because many times properties in various jurisdictions are not assessed every year. Sometimes a few years may go by before your property may be assessed by the local tax office. Having said that, the tax value of your condo is publically recorded, which means a buyer could take your property's tax value into consideration when choosing an offer price.
Property insurance values can also be a source when it comes to determining what your condo is worth. Your property insurance estimate is based on the replacement value of your condo, which means it covers the cost of completely replacing the property, less the land or amenities. This assessment might be a little lower than the true value of your condo, but you might still want to consider it.
Check Out the Comps in the Neighbourhood
Your real estate agent will pull a list of similar condos that have recently sold. Ideally, the units should be located in your building and haven't been sold any further out than 6 months. They should also be similar in size, number of bedrooms, floor level, and views. A 3-bedroom corner condo unit with water views will obviously be valued at a much greater price than a 1-bedroom condo on the first floor facing an industrial complex, for instance.
Comps for condos are typically much easier to assess than houses because they tend to be much more alike. As such, you can get a very good indication of what your condo is worth based on these other properties.
Speak With Your Real Estate Agent
You should never make a final decision about what your condo is worth and ultimately what you'll be listing your condo at without first speaking with your real estate agent. These professionals have the experience and training to better gauge what a condo - or any other type of property - is worth. Before you list your condo for sale, be sure to speak with your real estate agent first to make sure you come up with a sound price that will attract qualified prospective buyers.
Not only will your agent be aware of the comps in your neighborhood, how much value your condo has can also be determined, especially if it comes with a variety of unique and valuable amenities that other units in your complex do not have.
The Bottom Line
If you're planning on selling your condo anytime soon, it's worth finding out how much it's worth first. Doing so will give you an idea of how much you can list at and will tell you how much you may be able to put towards your next purchase.
If you are looking to sell contact April anytime at firstname.lastname@example.org for a free home evaluation.