Why Home Evaluation is DEAD
These past few years in Real Estate in the GTA and Greater Golden Horseshoe Area have been Extremely Busy. There is tons of Demand for this Location, which has resulting in the Industry changing to stay relevant to New Consumers. That, and “The Millennials are Coming!” (And they know what they want)
How does this affect the way me, as a Realtor, predicts the Market Value of your Home?
Well, for one, the number of Bedrooms and Bathrooms don’t actually matter as much to Buyers.
What did I just say?
That’s right, Buyers care more about other factors, like Lifestyle, other then the traditional Bed Bath and Beyond.
Yes, these things will still matter, but not as much as Location to Activities that are Conducive to their Lifestyle.
What exactly do Buyers care about these days? Some examples are:
Monthly Carrying Costs
Traditionally, Agents have compared Homes by the Price per Sq Ft., and what other Homes Sold for in the Area. This model may be coming to it’s end. You may soon no longer Measure worth by what your Neighbours House Sold for. Well, you can as a Seller to come up with a List Price, but from a Buying perspective, you are going to choose a place that is Affordable, and close to Where you want to be. You CAN put a Price on close Highway Access, being closer to your In-Law’s, or your Kid’s Soccer Stadium, to name a few!
What does this mean for the Future of Finding Real Estate?
Buyers will be using Sites like this to Narrow Down their Search by Specific Critieria that they are interested in: MoveUp.com
Agents will collect and analyze data based on Clients Lifestyle Expectations.
We (Agents) will be putting a price on things like:
Proximity to Favourite Restaurant or Bike Trail
How Close you are to what you Need, like a Dog Groomer for example.
Commute Time from Work
Cost of Utilities
Price of a Great View
People are also going to take more into consideration the Capital Cost Expenditures. For example:
- Property A: Roof is 20 years old and will need to be replaced in 5 years.
- Determine the Cost of New Roof
- Determine how much you need to Save every month, so you have the money in 5 years.
- Property B: Roof is New and won’t need to be replaced for 25 years
- Translates into people not having to Save as much Money every month
- Results in a cheaper long term Savings Plan, even if the cost of the house is $10,000 more
People are Working Smarter, not Harder!
It’s Called the Data Analytics Revolution, and it’s coming.
It’s going to change the way us Realtors do Business, because there is more data on what people want. Your Personalized Buying Plan is going to be a lot more Personalized!
Be sure you’re Working with a Realtor who is up to Speed on what really matters to you, on a Grassroots level.