WRITING AN ANALYSIS TO DETERMINE MARKET VALUE
Good afternoon ___________,
Please find attached to this email a long list of comparable sales to 140 Willow Creek, dating back to March of this year. As you'll see in the list of comparables, sales numbers are not as consistent as one would hope. There is somewhat of a trend in these numbers, though - most homes similar to ours (from the same builder, Minto, with 2-car garages and a similar number of bedrooms) are selling in the $800,000s. When comparing our subject property at 140 Willow Creek to other homes in the neighbourhood, you will notice our home has better-than-average interior finishes, but an average-sized lot and an unfinished basement. My estimate of its market value ranges between $790,000 and $830,000. Here's how I have come to this conclusion:
The most comparable sales have sold in a wide range of $725,000 to $885,000. As I go through some of them below, though, you may notice where our property is most likely to fall. Here they are in chronological order of sale date:
March 2021: 6 Bearman St (sold for $800,000)
This home is similar in many ways. It was built by the same builder at about the same time (2004 for 140 Willow Creek vs 2005 for 6 Bearman), it's of a similar model, has the same size home and lot, also has 4 bedrooms upstairs, and a 2-car garage. It also has a fully finished basement with an extra full bath. So far, this home is of higher value than our subject property. However, its interior finishes are less modern and less attractive to most buyers (carpet on the floor in many places, older hardwood and older kitchen). Compared side-by-side, this home would normally sell for a similar amount to our home, even considering the fully finished basement. This makes it a strong comparable.
April 2021: 175 Willow Creek Cir (sold for $803,500)
This is possibly the best comparable sale to our subject property. It was part of the same development of our subject property's model of home, on the same street, has the same size lot and is just 2 years older. It did, however, have only 3 bedrooms upstairs and a less attractive interior. Its partly finished basement may make up for the fact its interior is less attractive, but it certainly does not make up for the lack of a 4th bedroom upstairs. Listed at the same time, this home would sell for less than our subject property at 140 Willow Creek. However, the month of April was part of the peak of the market this year (see Figure 1 below this list of comparables).
Sep 2021: 409 Nittany Cres (sold for $815,000)
Despite their differences, this home remains a great comparable sale because of its similar size and model and many other important similarities. Just 2 years newer, it has the exact same size lot and a 2-car garage. It has one less bedroom upstairs, though, and one extra partial bath in the partly finished basement. Its interior finishes are generally of higher quality, although something could be said about its large presence of carpet on the floor. All-in-all, I would say this home is of very similar value to our subject property. Considering the extra bedroom at 140 Willow Creek, it wouldn't be surprising to see our subject property sell for more than this amount of $815,000.
Oct 2021: 415 Nittany Cres (sold for $885,000)
This home is also similar in many ways - it's a same-size lot, built by the same builder in a somewhat similar model. It also has 4 beds and 2.5 baths, and a 2-car garage. It has some significant plusses, though - it's a bigger home, its interior is generally more upscale and luxurious and it has a partly finished basement. Listed at the same time, this home would sell for significantly more than our subject property. This home can be seen as an example of the higher end of the market for similar homes - it's almost certain our home will sell for less than this amount of $885,000.
Figure 1: Median Sale Prices of Detached, 2-storey Homes in Barrhaven, Ottawa. This data goes back to 12 months and results were calculated from 613 listings, which allows for an accurate analysis of the market. You will notice the median sale price reach its peak in March and April of this year, after which it slowly settled. It's back up again for the fall market, but seems to slow down in the month of November. It's important to note data for this month of November is still very limited and no substantial analyses can be extrapolated yet.
Determining how much to offer for this type of home is no easy task. As you can see, though, it's most likely for it to sell in the range of $790,000 to $830,000, though. It's difficult to narrow that number down further as it will largely depend on how much interest there is from other buyers, which can be measured by the number of offers that are presented on offer day. Don't hesitate to share your thoughts, comments or concerns.
SUBMITTING THE OFFER
Email to listing agent:
Good evening Taylor,
I'm pleased to submit an offer for your listing at 532 Temiskaming on behalf of my clients Adey and Melaku.
Offer price: $599,000
Deposit amount: $10,000
Closing Date: 2nd Dec 2021 (flexible)
Irrevocable: 11:00am tomorrow, Nov 5th 2021
Please send a quick line confirming receipt of this email, and don't hesitate to reach out my way should we be of any assistance to yourself or your clients in their decision.