When it comes to the value of a Ottawa condo, the owner of the house and the prospective buyer will have different opinions on the true worth of the condo. Regrettably, their opinions are not determined by market statistics and therefore will not count towards the value of the condo.
Obviously, the seller will place a high value on the condo and likewise the buyer will want to get a bargain and get it for the lowest price possible. This is where market value plays an important role in determining what the condoowner and the buyer could agree on during a transaction.
A condo appraiser can provide you a pretty accurate estimate of the current value of your Ottawa condo based on existing market statistics.
A simple definition of market value is the final purchase price agreed upon between the buyer and seller. As long as both parties are not coerced into any purchase agreement, the transaction can take place. This is also called an “arms length transaction”.
To analyze the true market value of the condo, the real estate appraiser will have to go over and do a comprehensive survey of the condo and note the features of the Ottawa house, such as the floor area, the plan of the house, internal and external features of the house, the age of the condo and other things.
With an in-depth physical check of the house, the condo appraiser can then determine the market value using the following 3 factors.
1. Market Approach: The value of your Ottawa condo will be compared to other condos around the neighbourhood.
2. Cost Approach: Your condo will be calculated based on factors such as recent renovations and upgrading; wear and tear especially on the building structure itself, the current condition of the house and external factors such as the type of neighborhood it is in and so on.
3. Income Approach: This method is used to determine the market value of Ottawa properties that make money through rental agreements such as duplexes, apartments, condominiums and commercial properties. If the condo generates a large amount of income, then this is a significant enhancement to the overall value of the condo.
Since it is not a straightforward subject, obtaining the value of your Ottawa condo can be a bit challenging. Make sure you hire an experienced and qualified condo appraiser to help you do the job. I can talk to you more about market values if you have been thinking about selling and want to find out the value of your condo.
HomeLife Capital Realty Inc., Brokerage*
