If you take two identical homes and place them in different locations, you’ll likely find that they don’t have the same real estate value. Have you ever thought about why that might be?
This blog post will outline what goes into a real estate valuation and will show you how you can find out the value of your home RIGHT NOW!
Factors that Affect Property Value
Almost anything can affect the value of your property. But there are factors that will weigh more heavily on the valuation. These factors tend to relate to the lifestyle offered by the property – since the process centres on the buyer’s preferences.
Here are the major factors that will weigh in:
Location, Location, Location
A vacant block in a sought-after location might sell for more than a modern, well-kept 4-bedroom home in another. Location plays directly into the lifestyle on offer, including proximity to work, public transport availability, and access to green spaces, bike channels, and public amenities.
Other factors related to location, like neighbourhood crime rates or proneness to natural disasters, will also play into the desirability and, therefore, the value of the home.
Floor Plan & Property Size
The overall size of the property, plus its features, impact the property valuation. Properties with more space and more features tend to attract higher prices – so, you’d typically expect a three-bedroom home to be valued at a price higher than a two-bedroom place (of similar quality) on the same street.
Property Condition & Age
The condition and age of the property play a role in its value. Newer homes tend to be worth more since they are likely to face fewer immediate maintenance issues and are more likely to come with up-to-date lifestyle features.
That said, an older home that has been well-maintained, updated, and improved may fetch similar values.
Whether your area is located in a buyer’s market or a seller’s market will also affect the price your home fetches.
In a seller’s market, demand exceeds supply – pushing prices up. In a buyer’s market, demand is less than supply – pushing prices down.
How to Increase the Value of Your Property
The location of your property is fixed and there’s not much you can do about the amenities or crime rate in your neighbourhood in the short term. So, you need to increase the desirability of your property to fetch a higher price.
Here are a few easy things you can do to increase the value of your property:
Virtual Home Renovations
Virtual home renovations allow you to sell the potential of your home to your buyers. Using high-quality 3D graphics, we can render a realistic renovation of your home so that buyers can see it as it could be – not as it is.
Virtual home renovations sell the buyer a dream! Which makes the property more valuable in their eyes.
Professional Home Staging
While cosmetic damage might not drastically impact how your home functions, buyers may view them as an indicator of more insidious problems. Home staging minimizes the impact blemishes in the condition of your property will have on the buyer.
It encompasses everything from painting your home to switching out your furniture for something more universally appealing. And it’s designed to spark the buyer’s imagination, igniting a desire for them to live in your home.
What determines the value of your home?
Ultimately, the single determining factor when it comes to the value of your home is – your buyer.
Only your potential buyers can decide how much money they’re willing to put into your home. And the successful buyer has the final say on the value of your home.
But good real estate agents are able to contemplate all the available information and market conditions to make an educated guess about the value of your property.
To get an estimate of the worth of your home, use our instant Property Valuation tool.
For a more detailed valuation, get in touch with our friendly realtors!
We’ve been consistently ranked amongst the best realtors in Canada.