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There are different ways of looking at and assessing the value of the property: 1. Cost to construct approach 2. Opinion of other prominent agents 3. MPAC Assessment 4. CMA 1. Cost to construct approach. The cost to construct 611 Bob-O-Link Rd. works out as follow: Lot Value ( 1 acre backing on conservation) - $1.5 mil Construction of main levels 7,500 x $350 per square foot = $2.625 mil Finishing of the basement 4,664 x $100 per square foot = $0.464 mil Landscaping $150K TOTAL : $4.739 mil Please keep in mind that this is a very unique, one of a kind lot and location. Also, the cost of constructing a bungalow is considerably higher than a constructing two storey home. You need more excavation, more basement walls to build, more walls, and more roof structure. Therefore $350 per square foot is a low assumption. It was my cost not including profit or management. 2. Opinion of other agents. Before we placed our house on the market we spoke with many prominent agents who work the high end market. We spoke with Loretta Phinney (She said 3.9 mil), Sam McDadi (He said 3,99 mil), James Hodgins, Matthew Regan (4.00 mil) and others. We also had open house for agents and many of them were very excited about the house. All of the agreed on a value from $3.7 to $3.9 mil. and is worth actually more. They said that the house is unique and will sell but will need to be exposed to the market and it’s just the matter of time. Loretta, Sam and Chris were very excited and they told me that will definitely bring their buyers here. 3. MPAC Assessment The property was assessed by MPAC for $3.9 mil and we have been paying taxes based on this amount for two years. Two years ago we hired a tax expert to fight the assessment to lower our payments. We were successful because our lawyer was well prepared and he beat the MPAC assessment on a technicality. However deep in my heart I do agree with the assessment of $3.9 mil. 4. CMA We based our CMA on the areas of the Rattray Marshes and Lorne Park and made adjustments for each property and location. Lorne Park is may be considered as more prestigious, but other than school district, in my opinion the Rattray Marshes are a more attractive place to live. This is a very quiet and secluded area within walking distance to the lake. I believe that not being in Lorne Park school district is offset by our one of a kind conservation lot.
458 Meadow Wood Rd - SOLD for $2,65 mil in January 2014. I know that house well as I was involved in the design. Let's use cost approach to compare both houses. The listing says 9,000 SF of finished space. In fact it is less that than but assuming the main floor and second floor together would be around 5,750 SF + basement 3,250 SF. Based on the square footage alone, we can calculate the difference in the construction cost of both houses. Our house has 7,500 SF on upper floors and basement has 4,500 SF. So calculations are as follow: Upper Floors : (7,500 - 5750) x $350 = $612,500 Basement: (4,660 - 3,250) x $100 = $141,000 Landscaping: Same cost assumed Lot Adjustment: Ravine lot is at least $500,000 more TOTAL ADJUSTMENTS equals to $ 1,253,500
ADJUSTED PRICE - $3,903,500
619 Bob-O-Link Rd - SOLD for $2,17 mil in October 2012. I designed this house and I was involved in the construction. This was not a new construction, it was actually an addition on an existing bungalow with a walk out basement. This has a few implications; the basement has less than 8 FT in height. The house was designed as a bungalow and the loft was finished later, just before the property was listed. The listing claimed that there were 2,000 SF in the loft which is not true. At the best it was 1,800 SF and many areas had low headroom, making the usable space closer to 1,400 SF with a strange lay-out. In case of the upper floor (attic) we can't assume $300 per SF, at the best it should be calculated at $150 per SF. The main floor has 2,800 SF. Let's do the math again to calculate construction cost to come up with adjustments. o Main Floor: 2,800 x $350 = $980,000 o Upper Level: 1,800 x $200 = $360,000 o Basement: 2,400 x $50 = $120,000 o TOTAL CONSTRUCTION COST equals to $1,460,000 which is less by $1,629,000 than 611 Bob-O-Link Rd. In addition the lot at 619 Bob-O-Link is only 0.75 Acres and is not a true ravine. We believe that in this case adjustment should by approximately $200,000.
o TOTAL ADJUSTED PRICE - $3,999,000
1615 Watersedge Rd - SOLD for $2.55 mil. in December 2011. I personally designed and built this house. It was undersold because the Sellers were in a distress situation. This property should have sold for at least for $3,0 mil. Regardless, I’ve made the adjustments below: o Upper Floors: (7,500 - 5,050) x $350 = $857,500 o Basement: (4,660 - 2,500) x $100 = $250,000 o Landscaping: Adjustment $75,000 o Lot Adjustment: Corner not ravine, partial lake view $200,000 o TOTAL ADJUSTMENTS equals to $1,382,500
o ADJUSTED PRICE - $3,932,500
481 Country Club Cr. - SOLD for $2,90 mil. in August 2009. This house was designed by my daughter and myself . This was actually an addition to the existing bungalow so the house had several flaws. The basement was less than 9 FT and the garage is not connected with the house and kitchen. Size of the house was 5,600 SF, basement 3,000 SF. Based on our calculations, the adjustments are as follows: o Upper Floors: (7,500 - 5,600) x $350 = 6650,000 o Basement: (4,660 - 3,000) x $100 = $166,000 o Landscaping: No Adjustments o Lot Adjustment Large 0.7 Acre lot backing on other houses with limited privacy. Lot value adjusted by $300,000 o TOTAL ADJUSTMENTS equals to $1,131,000
o ADJUSTED PRICE - $4,031,000
659 Meadow Wood Rd - SOLD for $2,875,000 May 22, 2015. I know this house very well. It was a house of our friends. Much smaller ($5250 Sf), strange floor plan and practically very small basement - approximately 2,000 Sf of usable space. Based on our calculations, the adjustments are as follows: Upper Floors: (7500-5250) x $350 = $787,500 Basement (466- - 2000) x $100 = $266,000 Lot - No adjustments very similar Total Adjustments equals - $1,053,000
ADJUSTED PRICE - $3,928,000
769 Cardinal Place - SOLD for $2,850,000 - April 2015. Very nice decor bit actually very standard design. I think the new design appeal to people but if you will look at floor plan this hose is very easy to build. It is 5,000 sf but on three levels including basement so for the purpose of the calculation we can use 3,400 sf for two upper floors and 1,700 sf for basement. Adjustment are as follow. Upper Floors (7,500-3,400) x $350 = $1,435,000 Basement (4,660 - 1,700) x $100 = $296,000 Lot is much smaller and has very little flat land, has a pool but I feel that there is at least $500,000 difference in the lot value TOTAL ADJUSMENTS equals to $2,231,000
ADJUSTED PRICE - $5,081,000 THIS PROPERTY HAS BEEN SOLD FOR THE PREMIUM PRICE BY BEING MORE CURRENT.