Whether you are a first-time homebuyer, a current homeowner, or a real estate investor, it is important to know the increased growth that your home has experienced in 2021. Not only will a property valuation tell you what your home could sell for, but it can also help you determine how much equity you can pull out to refinance for another investment.
There are several different factors that can determine the value of your home, so it is important to take everything into consideration to gain an accurate number. Working with a real estate agent will help homeowners understand the factors that Buyers are interested in and will have a deeper understanding of the current real estate market and what homes are worth in your area.
We’ve broken down some of the factors that are used to determine the value of your home.
Home Valuation: Location
The location of your home plays a major role in determining its value. If your property is situated in a well-maintained, family-oriented neighbourhood that is close to many great amenities such as schools, parks, and public transportation, it will likely be valued higher than an identical property in a less desirable location. Many buyers are willing to overlook the features of the home if it is located in a safe, well-established neighbourhood. Being close to desirable stores and restaurants, as well as hospitals, can also increase your home’s value.
Size matters, especially when it comes to determining the value of your home. Both the size of the lot and the square footage of the property itself will play a role in determining your home’s overall value. Not only does square footage matter, but with the impact of Covid, we are also experiencing more multi-generational families living under the same roof. Buyers are seeking homes with more bedrooms, whether that means turning the extra bedroom into an office, or a school classroom, Buyers are searching for more space. The larger a home’s footprint, the higher the future resale value will be.
Renovations & Updates
If any major renovations or home improvement projects have been made to your property, these will improve the overall value of your home. Over the last two years, roughly 80% of buyers are seeking newly renovated homes with neutral colour palettes, an all-white kitchen, and a finished basement. In this current market, homeowners are investing in renovations that have seen up to 3x the return on their investment. Even something as simple as giving the walls a fresh coat of paint can be a great way of minimizing the work that someone else must do and is a great way to boost your home’s value.
Current Housing Market
The current housing market in your area will likely be one of the biggest factors in determining your home’s value. It is constantly changing, so working with a local real estate agent who is familiar with what is happening in your current market is essential when trying to get an accurate property valuation. One of the easiest ways to determine what your property is worth in the current market is to look at comparable properties in the area. Looking at homes for sale near you that have similar square footage, number of bedrooms and bathrooms, and updates will help you get an idea of what your home is potentially worth.
Determining the value of your property is always good information to know, especially after experiencing such a dynamic market in 2021. Whether you are looking to potentially sell your home or you just want to stay on top of what is happening in the current market, it is always important to know your home value.