Real Estate Valualtions
Real Estate Terms and Metrics Simplified
Understand key market concepts, clear up common misconceptions, and better assess the true value of your offer and potential purchase.
Comparable Market Analysis (CMA)
How REALTORS® Assess Property Values
At the basic level, the process involves comparing similar homes that have recently sold and currently listed to estimate a realistic price range for your property.
Every REALTOR® approaches pricing differently—from simply comparing feature sheets to conducting detailed market analyses.
We take a comprehensive, data-driven approach—where feasible and applicable—using multiple reference points such as:
Overall market price trends
Target property type price trends
Cost analysis
Rental market data
BC Assessment benchmarking
Other relevant supporting measures
This approach helps you determine market value with clarity and confidence.
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The day the Seller and Buyer reaches a legally binding contract (subject to conditions), also known as contract date.
It is used to calculate days on market and the rescission period.
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The day title and money are exchanged. The date is used to calculate S/A Ratio.
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The sale price divided by the interior square footage of a property.
For purchasing analysis, we focus only on interior living area and carefully screen for misleading or inflated marketing figures.
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Rate of return on a real estate investment based on the property’s net operating income (NOI) and its current market value or purchase price. Used to evaluate investment and prices.
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Median or average number of days between when a property is listed and when an offer is accepted (acceptance date) in a given month.
We often also look at cumulative days on market (CDOM) when assessing a property as it will factor in re-listed properties, revealing how long it has actually been trying to sell for.
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The number of home sales divided by total active inventory for the specified period.
Below 12%: Buyer’s market — typically associated with downward price pressure.
12%–20%: Balanced market — stable prices and moderate activity.
Above 20%: Seller’s market — often leads to upward price trends.
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The number of properties available for sale in active status at the end of a given month.
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A count of the properties that have been newly listed on the market in a given month.
Real Estate Terms
Basic Terms for Understanding the Real Estate Market
Listing Price
Listing price is simply the Seller’s asking price—it can be unreasonable!
Sellers often aim high, which is why it’s helpful for Buyers to set a higher maximum budget as it expands your selection and lessens your competition.
Conversely, many REALTORS® use a strategy of pricing a property 10–15% below market value to create urgency, increase traffic, and spark a bidding war. The success of this strategy depends on the market conditions at the time.
In my experience, the best way to find a good deal is to submit an offer and negotiate.
BC Assessment
Why the recommended market value may differ from BC Assessment?
BC Assessment uses a Computer-Assisted Mass Appraisal System (CAMA) to estimate property values for tax purposes, based on factors such as location, size, age, and comparable sales on July 1, then release the data in January — due to the time lapsed and broad modeling, the data may not reflect individual property or current market conditions .
Dennis Chen PREC* uses BC Assessment as a supporting benchmark, comparing it with recent sold data for added context and accuracy to improve your decision making confidence.
Note: New builds do not have a BC Assessment price until the first or second year and uses the purchase price or an interim assessment value.
True Value is in the Eye of the Beholder.
Market statistics matter—but so do your emotions, lifestyle, and personal preferences. By combining what you value, market statistics, with a clear understanding of hidden costs we can design the offer strategy that best serves you.