If a home on your street just sold, you might be wondering: How does this impact my home’s value? Whether you’re thinking about selling soon or just keeping an eye on the market, your neighbour's home sale plays a key role in determining what your property is worth.
As an experienced South Surrey & White Rock Realtor, I, Omeed Ghafori, help homeowners understand the real market value of their properties and how surrounding sales impact pricing. Let’s break it down.
1. How Comparable Sales ("Comps") Affect Your Home’s Value
Real estate agents and appraisers use comparable sales (or "comps") to determine a home’s market value. A comp is a recently sold home in your area that is similar in size, condition, location, and features.
📌 If your neighbour's home sold for a high price: This sets a strong benchmark for your property value, signaling a healthy market and boosting buyer confidence.
📌 If it sold below market expectations: This could suggest a cooling market or issues that might also affect your sale (e.g., too much inventory, fewer buyers, or high interest rates).
💡 Pro Tip: Not all sales are true reflections of value! A home that sold underpriced due to distress (foreclosure, quick sale) won't negatively impact your value as much as a well-marketed, competitive sale.
2. The "Ripple Effect" of Neighbourhood Sales
Your neighbour's sale influences not just pricing but also buyer perception. Here's how:
✅ Momentum Effect: When homes sell fast at competitive prices, buyers see the area as desirable, increasing demand. ✅ Market Confidence: High sale prices can create a "fear of missing out" (FOMO) effect, encouraging strong offers on new listings. ✅ Increased Interest: A recent sale often sparks more buyer activity, making it a great time to list your home while interest is high.
💡 Timing matters! If multiple homes are selling at strong prices, listing sooner rather than later can help you ride the momentum.
3. Factors That Make a Comparable Sale Relevant
Not all neighbourhood sales carry the same weight. A truly comparable sale should match your home in:
🏡 Location: Same street or community, similar lot sizes, school district, and amenities. 🏡 Size & Layout: Homes within 10-20% of your square footage with a similar bedroom/bathroom count. 🏡 Condition & Upgrades: If your home has a renovated kitchen, finished basement, or new roof, it may be worth more than a similar home with outdated features. 🏡 Time of Sale: More recent sales (within 3-6 months) give the most accurate reflection of the current market.
💡 Thinking of selling? I provide a detailed Comparative Market Analysis (CMA) to show you how your home stacks up against recent sales.
4. When Your Home Could Sell for MORE Than Your Neighbour's
Even if a similar home just sold, your property could fetch a higher price if:
✔️ You have unique upgrades (modern renovations, smart home features, energy efficiency upgrades). ✔️ Your lot is better (corner lots, larger backyards, or scenic views can add value). ✔️ Market conditions improve (if demand increases after your neighbour's sale, you could benefit from a better selling environment).
💡 Want to know if your home is worth more? Let’s chat about strategies to maximize your selling price!
5. How to Use Neighbourhood Sales to Your Advantage
If you're planning to sell, leverage recent sales to position your home competitively. Here’s how:
📊 Get a Custom Market Evaluation - Don’t rely on online estimates! I provide accurate pricing based on real data. 📸 Showcase Your Home's Strengths - Highlight features that make your home stand out. ⏳ Time Your Listing Right - Listing soon after a strong sale can attract motivated buyers looking for similar properties.
Want to Know Your Home's True Value?
If you’re curious about your South Surrey or White Rock home’s current value, I offer a free, no-obligation home evaluation.
📞 Call or text me at 778-316-7506 or visit www.OmeedGhafori.com to get started.
Let’s make sure your home sells for top dollar! 🚀
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