Above four units, lenders and appraisers generally price on stabilized net operating income and a capitalization rate rather than on straight comparables, and a report from an Appraisal Institute of Canada designated appraiser often enters the picture. Up to four units, comparable sales with a rent adjustment still carry more weight.
Existing tenancies transfer to a buyer under the Residential Tenancies Act, 2006, so a rent roll, lease copies and 12 months of operating costs need to be ready before the listing goes live, not assembled after an offer arrives. Seller closing costs generally run 4 to 6 percent of the sale price on top of that.
Joel confirms what is legally permitted, separates documented income from optimistic income, and prices the building on what it verifiably is. Get your hand-reviewed valuation from Joel Dyck.