This Is Why Your Home Needs an Opinion of Value
Selling a property is hard work - but perhaps what’s most difficult in the beginning of the selling process is determining what your property is worth.
When you first discuss the sale of your property with your Realtor, or when you begin considering the selling process, you’ll likely have a number of questions about figuring out how much your property is worth, and the price it should be listed at.
This is where an ‘opinion of value’ comes in. Put simply, an opinion of value is an estimate of value based on market analysis. Some opinions of value can be more detailed than others, but the essential parts of an OPV include reviews of recent sales and property values for homes in neighbourhoods close to or similar to yours.
While that may sounds quite basic, an OPV can provide considerable insight into your property and can help both you and your Realtor determine the best price at which to list your property. For example…
An OPV will help you determine the actual value of your property
Before we dive to far into OPVs, it’s important to clarify that an OPV is not the same as an appraisal; unlike an OPV, appraisals are used to determine a plethora of information, such as property details in the public record, information for mortgage lenders, and more. However, an OPV is still key in helping to determine what your property can be listed at.
That’s because an OPV allows for in-depth market analysis in addition to a property analysis, whereby your Realtor reviews your property, the value of any renovations or updates, comparable properties and neighbourhoods, and more.
The market supplies key data
Opinions of value hold the most benefit for home sellers in respect to the data. Specifically, OPVs allow your Realtor to dive deeper into comparable properties, not only for recently sold properties but for properties in various neighbourhoods, with similar home features. This is the data you will need in order to better understand why or how a Realtor suggests a list price for your home.
There may be room for improvement you didn’t know your home needed
One of the key benefits to having an OPV is home improvement knowledge. For instance, a Realtor may be able to spot areas of opportunity in your home for increased value, such as small updates or minor home renos which can increase the value of your home. By knowing where you can up the value and worth of your property, it is far more simple to take steps to improve your home if necessary!
Opinions of Value can help prepare you for the real estate market
OPVs are not only a great resource for home sellers but can actually help you better prepare for the market and everything that comes with selling property. That’s because an opinion of value gives you insight into what to expect from a listing perspective, and it’s helpful to be aware of your home’s worth before you open it up to prospective buyers! In a way, an OPV is one of the stepping stones to listing your property!