Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

How do I get a value on my Saskatoon investment property?

Investment property is valued on income as well as on comparable sales. Up to four units, lenders still lean on adjusted comparables. Above that, value comes from stabilized net operating income divided by a market capitalization rate, and lenders generally require a report from an Appraisal Institute of Canada designated appraiser rather than an agent's opinion.

Assemble the paperwork before anyone puts a number on it. That means a current rent roll, the leases themselves, twelve months of operating expenses covering property taxes, insurance, utilities, maintenance and management, and a realistic vacancy allowance. Tenancies in Saskatchewan run under The Residential Tenancies Act, 2006, and the terms in place transfer with the building, so a below market rent locked in for another year is part of what a buyer is purchasing.

Confirm the legal position separately. Zoning and suite compliance are checked with the City of Saskatoon, and income from a suite that is not permitted is not income a lender or an insurer will credit. On an older building, budget $400 to $600 for an inspection and $800 to $1,500 in legal fees to close through a Saskatchewan lawyer, and expect a buyer to underwrite conservatively.

The valuation trap is deferred and undocumented work. Furnaces, roofs, electrical upgrades and unit renovations carried out over the years often never reached a permit file, so public records and online estimates show none of them. Joel Dyck's hand-reviewed valuation separates verifiable income from optimistic income, counts the improvements the records missed and prices the building on what it demonstrably is.

Get your hand-reviewed valuation from Joel Dyck.

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