Let’s be honest: the current real estate market is kind of all over the place. There are more homes for sale than we’ve seen in years, and asking prices range from “Wow, that’s a steal!” to “Wait… they want what for that place?!”
Now, say we’re working together (yay!) and a house pops up: 123 Aylmer St. It’s a cute detached bungalow, about 1,500 sq ft, with a fresh new pool and some solid interior upgrades—like a new kitchen and bathrooms. The asking price? $1,125,000. Naturally, you ask me, “Is it really worth that much?”
Great question. Let me walk you through how I look at value—it’s part data, part instinct, and a dash of real estate experience.
Step One: Features, Features, Features
We look at what the home is: a 1,500 sq ft detached bungalow, nicely upgraded, pool in the backyard, updated kitchen and baths. All things we love, right?
Step Two: What’s Happening on the Street?
Now, we zoom out a little. What’s been going on in the neighbourhood?
There’s a 2-storey home down the street—much bigger at 3,000 sq ft. Not quite a fair comparison, but interesting. It was originally listed at $999,000, then bumped up to $1,175,000 (ballsy move), taken off, relisted at $1,095,000, and now sits at $1,149,000. It’s been hanging around for almost two months. Moral of the story? Overpricing = sitting – not selling..
Step Three: Sold Comparables—The Real Storytellers
Let’s check out some similar homes that have actually sold:
- One just a few blocks over sold in April for $950,000—same size, no pool.
- Another went for $960,000 in January, also similar size, no pool, but on a quiet court.
- A third one, a bit bigger, sold in March for $1,090,000—originally listed at $1.2M, then dropped to $1.109M before selling. Still no pool.
Now here’s the clincher—a home just a few doors down from 123 Aylmer sold for $1,000,000 in January. Same size, no pool, but it siding onto a busy road. Ding ding ding! That’s our best comparable so far.
Step Four: What’s Currently for Sale?
The only other bungalows on the market now? One at $840,000 and another at $1,080,000. That $1.080M one has been sitting for about 2 months after being reduced from $1.37M. Yikes.
So clearly, getting over the $1M line for a bungalow in this area takes a little magic… or a pool. Or both.
Step Five: Crunching the Numbers
Let’s go back to the $1M home that sold in January. Prices have bumped up a bit since then—average detached homes went from $830,000 to $846,000, so about a $16,000 increase.
Now factor in that shiny new pool and the kitchen/bath upgrades. If the renos are worth, say, $175,000 total, we typically expect about half of that to be reflected in market value. That gives us roughly another $87,500 in added value.
So that lands us at about $1,100,000—right in the ballpark of the current asking price.
Final Thoughts (And a Little Insider Tip)
It seems like this home is fairly priced, especially if homes in the area are selling at or near asking. There’s likely still a little wiggle room for negotiation, and that’s where strategy comes in.
BUT—and this is a big “but”—we always have to consider the seller. Are they dreaming big? Are they motivated to sell? Sometimes people think their home is worth more than what the market says, and no amount of spreadsheets will change their mind.
If this is a home you love, we’ll talk about the best way to approach an offer that makes sense—both emotionally and financially.
And hey, I’ll be with you every step of the way.
Book a free strategy appointment: https://koalendar.com/e/meet-with-lindsay-smith-2
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