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

How do I value a two- or three-family house in North Park?

A North Park multi-unit property is valued by combining comparable multi-unit sale prices with the property's actual net income, adjusted for suite legality and condition, per the sales the Saskatchewan REALTORS Association records for the area. North Park's mixed housing stock means the adjustments matter more than in a uniform subdivision.

Legal status of each additional unit is the biggest single factor. The City of Saskatoon requires permits for secondary suites, and a lender will only credit rental income from a suite that permit file supports, so two houses that look identical from the street can be worth very different amounts depending on what is on record.

Net income, not gross rent, is what actually gets underwritten. Property taxes, insurance, utility costs not covered by tenants, and a realistic vacancy allowance all come off the top, and a seller presenting only the advertised rent is leaving out the numbers that determine what a buyer can actually finance.

Existing leases transfer under the Residential Tenancies Act, 2006, so a buyer's lawyer will want those reviewed before closing. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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