Your Neighbour's House Sold for $900,000. So Why Isn't Yours Worth the Same?

Laura Cade

6 days ago

2 min read

Your neighbour's house just sold for $900,000. Same street. Similar size. So your home must be worth $900,000 too, right? Not necessarily.

A sale price is evidence, not a price tag

A nearby sale can be an excellent starting point, but it is not a substitute for analyzing the property itself. Buyers may have been influenced by timing, competing offers, financing conditions, renovations, layout or lot characteristics.

Two houses. One street. Different markets.

Imagine two homes in Niagara Falls. One has a finished basement, updated mechanical systems and a functional layout. The other has deferred maintenance, an awkward addition and a smaller usable yard. Their postal codes may match, but their market appeal may not.

What an appraiser looks beyond

A professional appraisal considers relevant comparable sales, property condition, size and design, location, site characteristics, permitted uses, market conditions and the rights being valued. Adjustments are supported by market evidence rather than a simple dollar amount for every feature.

The detail people often miss: the date

A sale from six months ago may reflect a different market than today's. The date of valuation matters, especially for refinancing, estate planning, matrimonial matters and retrospective assignments.

When a neighbouring sale is misleading

A headline sale might include unusual motivations, a superior lot, extensive renovations or features not obvious from online photographs. Even a genuinely comparable sale requires careful verification and analysis.

The question worth asking

Instead of asking, 'What did the house next door sell for?' ask, 'How would buyers compare that house with mine on the valuation date?' That is where a thoughtful valuation begins.

Cade Appraisals Inc. provides independent real estate appraisal services throughout the Niagara region, including Niagara Falls, St. Catharines, Welland, Fort Erie, Thorold and Port Colborne. Learn more at www.cadeappraisals.com.