Say your home is 1,400 square feet, and three similar homes nearby sold for $880,000 at 1,350 square feet, $925,000 at 1,450 and $860,000 at 1,300. Their average is $650.44 per square foot. Applied to your size, that gives an estimate of $910,617, with a range from $865,086 to $956,147.
The comparable sales method
Agents and appraisers value a home by studying recent sales of similar ones nearby. Price per square foot puts those sales on the same footing. Multiply the average by the size of your home and you have a starting value.
Choosing good comparables
Look for homes sold in the last three months, in your neighbourhood, of a similar type and age. Compare a detached house with other detached houses. Skip sales between relatives and forced sales, because those prices may not reflect the market.
Adjusting for differences
No two homes match exactly. A new kitchen and a finished basement add value, while old windows or a small lot take it away. The adjustment box handles this: plus 5% for a better home, minus 5% for a weaker one.
Take the $910,617 estimate with a 5% bump for a renovated kitchen, and the value rises to about $956,148. An old roof and an unfinished basement call for minus 5% instead, which gives about $865,086. Be honest.
Check the arithmetic of the comparables. $880,000 divided by 1,350 is $651.85, $925,000 by 1,450 is $637.93 and $860,000 by 1,300 is $661.54. The average of those three is $650.44. A single odd sale can pull the average a long way, so drop it if the home is not truly similar.
What the range tells you
An estimate is a midpoint. It is not a price. The range field draws a band around it, five per cent by default. Homes sell above and below their estimated value, depending on the market and how many buyers show up.
Adjust the numbers in a fixed order. Start with the average price per square foot, multiply by your size, then apply the percentage for condition, and only then read the range. Doing it in that order keeps each step clear. Write down which sales you used and why, so you can update the estimate later when a new sale appears on your street.
Where to find sales
Real estate agents will share recent sales for free. Some public listing sites show sold prices too. Check the size and lot of each property carefully. And remember that the assessed value from the Municipal Property Assessment Corporation is not market value.
Limits of the method
Price per square foot suits similar homes best. It gets shaky for very small or very large homes and for unusual properties. A lender’s appraisal goes into far more detail, so treat this number as a first step. It still earns its place when you set a price to sell, check an offer to buy or plan a refinance.
Condos in Toronto
For a condo, compare units in the same building or the one next door, and match the floor, view and parking. Price per square foot can differ by 10% or more inside a single tower. Include maintenance fees in the comparison. A low price with high fees is no bargain.
When a professional should look
Before you sell or refinance, ask an agent for a market analysis, which is often free, or hire an appraiser for a lender-grade report. Views, noise, layout and recent changes on the street are details a calculator cannot see.
Where to go next
See what you would keep after a sale with the home sale net proceeds calculator. Track growth with the home appreciation calculator, and measure the size with the square footage calculator. To learn what a bank might lend, try the mortgage affordability calculator.
Frequently asked questions
How do I estimate my home's value?
Multiply the average price per square foot of similar recent sales by your home's size.
How many comparables do I need?
At least three.
How recent should the sales be?
Ideally within the last three months.
Is assessed value the same as market value?
No. Assessments follow their own rules and dates.
Is this the same as an appraisal?
No. An appraiser also inspects the home.
How do I adjust for condition?
Add or subtract a percentage for better or weaker features.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.