Regardless of whether you are a current homeowner, an investor, or are looking to enter the housing market for the first time, understanding the value of your home or a home you’re looking to purchase is incredibly important. There are several different factors that can determine the value of your home, or the replacement value of your home, so make sure you take everything into consideration. Working with a real estate professional can help you better understand the current market and how it could impact your home’s value.
We’ve highlighted some of the key factors that are used to determine the value of your home.
Value of Your Home: Current Housing Market
One of the biggest factors in determining the value of your home is the current housing market. It is constantly changing with inventory levels constantly shifting, so working with a real estate agent is vital in getting a pulse on what is happening in your local market and where your home might fit within it. Taking a look at comparable properties in your area can help you get an idea of what your home might be worth, but don’t forget to factor in the type of home, square footage, number of bedrooms and bathrooms, and any updates that might set your home apart from others. An experienced real estate agent will have knowledge of the current market and your neighbourhood and will be able to help you put a number to your home’s value.
Size of Your Home
Size matters, especially when it comes to determining your home’s value. The square footage of the property itself is important to keep in mind, but it’s also a good idea to factor in the size of the lot as well. Many buyers are looking for more space, whether it’s to accommodate a home office/flex space or multiple generations living under one roof. Generally speaking, the larger a home’s footprint or the bigger the lot, the higher the resale value will be in the future.
Updates & Renovations
When determining the value of your home, it’s important to take into account any renovations or updates that have been made to the space, as these could help improve your home’s overall value. While some homeowners take on large renovations such as redoing kitchens or bathrooms to help increase their home’s value, while others keep it simple and opt to give the walls a fresh coat of paint or update flooring in certain rooms to help freshen up the space. Even small updates that might not seem like much can have a huge impact when it comes to appealing to potential buyers and boosting your home’s value.
Like the current housing market conditions, the location of your home is going to have a huge impact on its overall value. Neighbourhoods that are close to amenities such as schools (public, private, and French), shopping, and green spaces are often times going to be more appealing to potential buyers who are looking to be close to those things. Considering your home’s location and proximity to different liveability factors can be a huge help when determining its overall value. An experienced real estate agent will also be able to give you information on what other homes in your area might be selling for, which can help you better understand your home’s value.
Whether you’re looking to put your home on the market or are just wanting to stay up-to-date with what is happening in the current market, it’s always important to understand the value of your home.