What is an Opinion of Value? Sharon explains.
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Sometimes, before someone lists a property with me, they need to get a sense of the appropriate range of potential values for their property without going through a formal, extensive appraisal process with a Certified Residential Appraiser.
According to the Canadian Real Estate Association, an Opinion of Value is:
“means an estimate of the value of specified interests in, or aspects of, identified real estate which may be based wholly or partly on comparative market analyses. An Opinion of Value may contain more or less analysis of relevant data than an appraisal and may be performed by a REALTOR®.”
As a Realtor® and Broker, I can provide an Opinion of Value, which is a review of sales and property data for similar properties in your area. As part of the Realtor® Code of Conduct, we are prohibited from providing Opinion of Value on properties in which we have financial interests, where we lack the appropriate technical skills and the fee charged for the OPV has nothing to do with the actual value of the property.
If you hired me to do an OPV on your property, I would meet with you, review your property and, after I finish my research, I would provide you with a letter and a summary of my market research. From this, you can set an asking price for your property. For most Opinions of Value (OPV), I charge approximately $300. You can book an OPV with me online, over the phone or by clicking the button below.
An OPV is different than a formal appraisal, which is typically much more expensive and often required by mortgage lenders. The Toronto Star had a great article by a RECO expert on the difference between an appraisal and an OPV.
“In many cases, a CMA or an opinion of value may provide the detail that a seller needs to set an asking price and review any offers that come in. If you feel like you don’t have enough information, you should ask your representative to provide more detail, or consider getting a formal appraisal.
It’s important to note that only a qualified appraiser can conduct an appraisal for you. That means holding a designation from the Appraisal Institute of Canada (http://www.aicanada.ca/ ) or the Canadian National Association of Real Estate Appraisers (http://cnarea.ca/ ). Some real estate professionals are also qualified appraisers, so it may be a service that your broker or salesperson offers. Note that you will likely have to pay for the appraisal if it’s not a service that’s included in your listing agreement.
Whether the market is up or down, sometimes it can be tough for sellers to understand what their property is worth. A CMA or an opinion of value can all provide useful information to kick off the selling process. If you need more info, a full appraisal can provide an in-depth analysis.”
Glad I could help clarify another real estate mystery!
Speak with you soon,