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

How do you value a three-family home in Willowgrove?

A Willowgrove multi-unit property is valued through the income approach: comparable multi-unit sale prices from Saskatchewan REALTORS Association data weighed against the property's actual and achievable rent, expenses and legal suite status, rather than treated like a single-family home with extra bedrooms. Willowgrove is a newer southeast Saskatoon neighbourhood, so comparable multi-unit sales there can be limited.

Legal suite status decides most of the value gap between two similar-looking properties. A lender will only credit rental income from a unit the City of Saskatoon has permitted, so an unpermitted third unit contributes almost nothing to the appraised value even if it is fully finished and currently rented.

Expenses matter as much as income. Property taxes, insurance, utilities not covered by tenants and a realistic vacancy allowance all reduce the net income a lender will actually underwrite against, and a seller who only presents gross rent is presenting half the picture.

The Residential Tenancies Act, 2006 governs any existing leases and transfers with the sale, so a buyer's lawyer will want those documents reviewed before closing regardless of what the listing says. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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