🏡 Detailed Guide:

Factors That Determine Property Value

1. Comparable Sales (Comps)

These are recent sales of similar properties in the same or nearby neighborhood.

• Must be recent (usually within the last 3–6 months)

• Should be similar in size, age, style, and condition

• Look for price per square foot to estimate a rough baseline

• Consider how quickly these homes sold (DOM: Days on Market)

• Adjust based on upgrades or lot differences

2. Location

Location is often the most important factor in real estate. Value can vary greatly block-to-block.

a. Neighborhood

• Clean, well-maintained area

• Established vs. up-and-coming neighborhoods

• Access to city services and utilities

b. Proximity to Key Places

• Schools – High-ranking schools often increase property value

• Shopping – Malls, grocery stores, cafes, restaurants

• Transit access – Bus, train, highways

• Recreation – Parks, trails, community centers, gyms

• Healthcare – Hospitals, clinics, dental offices

c. Safety

• Low crime rate

• Street lighting, sidewalks, family-friendly vibe

d. Future Developments

• Planned infrastructure or amenities can raise future value

• Be aware of undesirable projects like new industrial zones or highways

3. Market Trends

The state of the market affects how much buyers are willing to pay.

• Buyer’s Market = More supply than demand → Lower prices

• Seller’s Market = More demand than supply → Higher prices

• Interest rates: Higher rates usually reduce buyer budgets

• Seasonal trends: Spring and early summer typically more active

4. Condition of the Property

The better the condition, the higher the value.

a. Interior

• Fresh paint (neutral tones)

• Clean floors and carpets

• Updated kitchen and bathrooms

• Decluttered and staged spaces

• Energy-efficient appliances or windows

b. Exterior

• Curb appeal: landscaping, lawn care, flowers

• Clean siding, roof in good condition

• Working gutters and downspouts

• Updated or well-maintained doors and windows

c. Repairs Needed

• Loose cabinet handles, squeaky doors

• Cracked tiles, water damage

• Non-working lights or missing bulbs

• Plumbing or electrical issues

5. Home Features

The more functional or desirable features a home has, the higher its potential value.

• Total square footage (above and below ground)

• Lot size and usable outdoor space

• Bedrooms and bathrooms – more typically means more value

• Number of kitchens – separate suites or rentals add major value

• Storage space – closets, basements, attics, garages

• Garage or driveway – off-street parking is valuable in urban areas

• Basement – finished basements add usable space and value

6. Age of the Property

• Newer homes often sell for more due to modern construction and codes

• Older homes may need updates but can have charm and solid construction

• Key system updates increase value: Roof, furnace, plumbing, electrical, insulation

7. Zoning & Official Community Plan (OCP)

The city’s plans for the area affect long-term property value.

• Zoning: Residential, commercial, mixed-use, etc.

• Suite potential: Is a legal rental suite allowed?

• Development potential: Can the property be subdivided or redeveloped?

• OCP designations: Shows future land use plans (like high-density zoning)