When a house on your street sells, the price is usually the first thing you want to know. The question that inevitably pops in your mind is “Could I get that for mine?”

Maybe. 

The first thing I’d ask is whether the buyer who paid that price would have put your home on the same shortlist.

Would the same buyer have looked at both homes?

Say you own a semi-detached home in Markham. Three doors down, a renovated detached home with a double garage just sold. You share the same street, but that buyer may have been looking specifically for a detached home, extra parking or a kitchen that was already updated.

Now say another semi-detached sold a few streets over. It has a similar lot, layout and level of upkeep. I’d give that sale more weight because it shows what a buyer paid for a home they might have toured on the same afternoon as yours.

What could buyers choose from then and now?

I’d check what else was for sale when each home sold. If buyers had only one or two similar homes to choose from then and have several today, that matters. Your asking price has to make sense beside the homes they can book a showing for this weekend.

I’d also pay attention to a similar home that’s been sitting on the market. Its asking price tells you what the seller hopes to get. The fact that it’s still for sale gives me a reason to look closer at the price and what buyers get for it.

So what does that sale price tell you?

Before you use it to estimate what your home could sell for, ask three questions:

1. Would the same buyer have looked at both homes? Compare the home type, layout, lot, parking and condition.

2. What did the other home offer that yours doesn’t, or vice versa? Think about the features a buyer would actually pay more for.

3. Do other similar sales point to the same price range? If one sale is much higher than the rest, find out what made it different.

If the house down the street passes those checks, it can help you narrow down a realistic range. In the semidetached example, I’d start with the similar semi a few streets over and see whether other semidetached sales back it up. I’d then check where your home fits among the listings buyers can see today.

If a sale in your Markham neighbourhood caught your eye, send me the address. I’ll tell you how much weight I’d give it and which homes I’d compare yours with first.