A question we often hear from real-estate curious people is what does “good value” really mean in real estate and how do you find it? This can be a serious concern if you’re new to the real estate world. Maybe you are in a strong financial position, ready and looking to buy, but you don’t know a whole lot about real estate values, market trends, etc. You’re likely wondering about “good value.”
Everyone wants to find good value when they begin their search to buy property, whether a condo in Toronto or a free-hold house. But good value can be a difficult thing to find. Young buyers at the outset of their real estate investment should be wary of making uneducated and rash decisions that result in bad value purchases. Good value can be difficult to find because it’s not a single, definable thing.
So, what is good value in real estate?
In real estate, every individual’s requirements are different. It could be finding a unit priced under the average for the building, finding a building that trades lower than the neighbourhood average, or a unit that needs work and can be renovated.
“Good value is subjective. It depends on the unique requirements of the individual.” – Andrew Harrild, Partner and VP of Sales at Condos.ca
Some examples of good value opportunities
Good value could be when current downtown resale condos are $1000 PSF vs $1300 for pre-construction condos to be built in 4 years not counting delay. For an investor the buyer has a Renter that helps them build equity while the property continues to appreciate in value.
Condo Pro, Gloria Yeung says, “Good value for an international buyer could be when the CAD dollar is weak so the buyer can make money on both the exchange rate and appreciation.”
Depends on what you mean by value. Condo Pro, Colleen Doiron explains that if buyers are looking for a deal, “You can often point them towards units that don’t present well, aren’t marketed well or staged well, etc.” Condo buyers in general seem to lean towards more turn key purchases and shy away from doing repair or makeover work (vs a house buyer for example). But often these properties can sit on the market if they don’t present well, and a little paint and some small upgrades can go a long way.
The time of year can also be a factor in determining good value. You can look for seasonal purchases. It can be difficult to time the market exactly, but the holiday season and the summer months are often slower periods with less competition. During these times, buyers can often find good value with properties below the peak pricing or the spring market.
Given that good value is subjective, there are many other opportunities that you could come across, depending entirely one what you’re looking for.
How do you find good value?
First, you decide exactly what you’re looking for. When someone says they want value it really doesn’t mean anything without understanding their requirements. Jane and Finch offers great value if you’re looking for less expensive condos in Toronto. This is where a good agent, such as an experienced Condo Pro, would step in and drill deeper.
Value is also a matter of market trends and timing. With downtown condo prices appreciating daily and reaching new record highs every day, buying today is often better than buying tomorrow when it comes to catching good value.