How much is my home worth now?
How much has it gone up (or down) since I bought it?
Toronto’s real estate market is fluid, ever-changing. One accredited property valuation technique is to extrapolate a property’s original purchase price through the various marketplace fluctuations since its purchase to arrive at an indication of its current value. MLS averages over time are used to accomplish this. For example, if the MLS average in an area has gone up 10% since a property was purchased then it is reasonable to conclude that its value would be 10% higher than its purchase price. To this projected current valuation one would then add the market value of all improvements that have been made to the property since its purchase thereby arriving at an estimation of its current market value.
These averages are available for you to use at will on this site. Go to town!
Please remember that averages can be misleading. If, for example, in a particular month there were a few very highly priced sales in an area that typically has homes priced in the midrange, it could dramatically skew the averages in a manner not representative of the actual market. To counter this possibility we suggest using all of the numerous MLS averages that would be applicable for that property and are available here. For example, one might use the MLS average of the specific district in which the property is located, apply your calculations and see the projected valuation. Then go back and use the appropriate MLS average of that overall area to see what valuation it would suggest. Finally, use it again employing the GTA MLS average. Discard valuations that appear to be out of whack with the others.
Another variable is the market value of improvements that have been made. For example, one may spend $25,000 renovating a basement in a property but the market is willing to pay only $10,000 – $15,000 for a renovated basement in that area. Conversely, a main floor family room might cost $100,000 but its market value could perhaps be $150,000. Use the amount that the improvements actually cost you for this value estimation but be aware that the market may or may not be willing to pay that amount were the property offered for sale.
Finally, please realize that this is only one technique used to arrive at a property’s current value and every technique has its limitations. If one perhaps paid more for a property than its true market value at the time it was purchased then to project that high purchasing sales figure to today’s market would likely generate a high price that may or may not be able to be realized. This valuation technique assumes that fair market value was paid for the property when it was purchased. If you happened upon the greatest bargoon in Toronto when you bought the property then projecting that price forward would also propose an unrealistic valuation for today’s market — a price that may send you into fits of despair!
We are pleased to assist you however we can. Perhaps you would like us to provide an estimate of the market value of improvements that you have made.
Another relevant valuation technique frequently used is to compare the subject property to comparable properties that have recently sold.
We can assist. Just contact me.