Pricing Your Condo or Loft Properly the First Time – A Toronto Real Estate Agent’s Guide

By Evan Sage

There are very different tactics used when pricing a house versus pricing a condo or loft. Houses use frontage and depth as a base price for land value and then adjustments are made for the actual dwelling. The physical house can vary in value based on its age, quality, renovations, functionality, which way it faces and surroundings. If it is in really bad shape and has to be torn down it can actually detract from the land value. On a house it is good to get a pre-inspection done so that there are no surprises when you come to looking at offers.

Condo and loft properties rely heavily on the price per square foot of previously sold properties. Adjustments are made for the differences in time since the last sale, size, location in building, view, layout, outdoor space, parking, etc… Every condo building is fairly unique so price comparisons should remain within the building. Pricing a house gives you a bit more latitude with looking in different parts of a neighbourhood. Especially when pricing condos it is best to compare apples with apples with as few differences as available.

If it has been a long time since a similar property has sold you can look at a different building or area and see what the percentage increase or decrease has been over time, and apply that percentage to your specific property. It is important that all details are considered and assessed a value. Sometimes a property is just on the other side of the street but it backs on to the train tracks, so it won’t be a valid comparable.

After you have done your assessment there are some ways to double check whether it is accurate. It is common for a good real estate agent to ask a colleague to come through the property and give their thoughts. This is important if the property is very unique. We sometimes use the cities tax assessments and add a commonly accurate percentage to get the ball park figure. The common percentage is different for each neighbourhood and changes each year.

The average real estate agent will be involved in more home purchases and sales in a one year than the typical buyer or seller will be in their entire lifetime. Sometimes pricing is a combination of quantifiable variables and a gut feeling based on exposure and experience. A good agent is great with pricing.

Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog.  Evan’s web site is located at www.evansage.com.