Setting your asking price by using comparables

Establishing a good selling price is the key to a successful real estate transaction. To achieve this, comparable analysis is the method of choice for appraisers and owners who wish to estimate the value of a property. 

Contents : 

• What is a comparable analysis?
  • How do DuProprio appraisers work?
• What are comparables used for?
  • Features of JLR's comparables generator
  • How do I access other tools?
• The 4 criteria that define a comparable home
  • 1. Type of property
  • 2. Location
  • 3. Transaction date
  • 4. Property attributes
• Getting the right price
• FAQ 

What is a comparable analysis?

In real estate jargon, a comparable is a house similar to yours that has recently sold in your area. Comparable analysis consists of establishing a property's selling price based on recent transactions for a given type of home in a given neighborhood. 

How do DuProprio appraisers work?

Marlène Bates, appraiser at DuProprio, explains how they proceed: “First, we paint a portrait of your home by taking inventory of its characteristics (location, type of property, year of construction, number of floors, living area, size of lot, etc.). We then check how much similar homes in the neighborhood have sold for, and make certain adjustments to reflect the differences between the properties and yours”. In other words, they won't use a two-bedroom condo downtown to establish the value of a 10-room single-family residence in the suburbs. 

"We also analyze equivalent properties currently for sale - in other words, your competition, continues Marlène Bates. By studying what you offer more or less, this guides the price at which you should list your home to be competitive in the market.” 

What are comparables used for?

Real estate comparables enable sellers to set a competitive price based on recent sales of similar properties. They help justify the asking price during negotiations and attract potential buyers by reflecting the real market value. This is the information you need to close a sale quickly and efficiently. 

Features of JLR's comparables generator

JLR solutions foncières' comparables generator estimates the market value of a property using nearby comparable sales. This tool offers several features, including:

1. A comprehensive database Access to a large database of real estate transactions, enabling you to find comparable properties quickly.
2. Advanced filters Filter results by criteria such as location, surface area, property type, number of bedrooms, etc.
3. Detailed analysis Compares property characteristics and evaluates their impact on price.
4. Value estimation Generate accurate estimates based on comparisons with recent sales.
5. Data visualization Interactive charts and maps for a better understanding of local market trends.
6. Customized reports Create customized reports for easy analysis.
7. Real-time updates Access regularly updated data to reflect market trends. 

How do I access other tools?

Anyone can search for comparables sold in their neighborhood, since data on real estate transactions is also available on the Registre foncier du Québec website. 

To facilitate their search, our customers also have access to a directory of properties sold with the help of DuProprio in their area¹, via their online control platform Mon DuProprio. DuProprio's team of appraisers is available to assist owners in setting the sale price. 

The 4 criteria that define a comparable home

Together, these criteria provide an objective and relevant assessment of a property's market value. 

1. Type of property

This criterion ensures that the properties being compared belong to the same category (single-family home, condominium, etc.), which directly influences their value and attractiveness. 

2. Location

The value of a property is strongly influenced by its location. Factors such as access to services, quality of schools and neighborhood atmosphere play a crucial role in prices. 

3. Transaction date

Real estate market conditions can vary considerably over time. Comparing recent sales ensures that data reflects current trends and not obsolete prices. 

4. Property attributes

Specific characteristics (size, number of bedrooms, renovations, etc.) influence the value of a home. Comparables must therefore have similar attributes to provide an accurate appraisal. 

Getting the right price

This analysis allows us to survey the market. We then know the approximate amount that buyers are willing to pay for a given type of property in a given neighborhood. 

So, if comparable properties in a given area are selling for between $185,000 and $195,000, a seller might be wise to list his or her property in the same price range. 

“Don't forget that to get a fair idea of a property's market value, you have to target the right market, consider the elements that add value to the property, and, most difficult of all, maintain an objective reasoning as to the market value of your property,” concludes Marlène Bates.    

DuProprio's appraisers will be there to guide you through this delicate process, which is essential to the successful sale of your property! 

DuProprio offers a variety of tools and the advice of a team of appraisers to help you establish the value of your property and justify your price to buyers during negotiations. To find out more about our services, watch our short video or schedule a call with one of our advisors. 

FAQ 

How much does a real estate appraisal cost? 

The cost of a real estate appraisal generally ranges from $300 to $600, depending on several factors such as the size of the property, its characteristics and the region in which it is located. Free tools are available for analyzing comparables. 

What is a comparable sale? 

A comparable sale refers to a recent transaction for a similar property in the same geographical area. This method is used to assess the value of a property by comparing it to others with similar characteristics, such as size, type, age and equipment. Comparable sales help both the buying and selling parties to determine a fair price and understand market trends. 

How do you assess the market value of a property? 

To assess the market value of a property, start by analyzing comparable sales in the same area. Assess the property's characteristics, such as size and condition. Consider local market trends and, if necessary, consult a certified appraiser. Use appraisal methods, such as comparison, to obtain an accurate estimate.