What Influences The Evaluation Of Your Home?
Ever wonder what goes into deciding the value of your home? We often tell people that your home is worth what someone is willing to pay for it! However, determining what the market asking price should be takes a number of factors into consideration.
Neighbourhood Comparisons
When we look at the comps from your area we are trying to compare apples to apples. In some areas certain home styles sell for far higher prices. Think ranches vs 2-storey homes. An updated home will obviously demand a higher price vs one that is original to the day it was built.
Location
We have to also account for where one neighbourhood ends and another begins. Your home may be a similar style to one in another neighbourhood but that doesn’t mean pricing transfers across neighbourhood boundaries.
Home Size , Design, Layout, and Unique Features
All of these variables will impact your value. Maybe not all in the way you think! Having unique design items in your home may suit you but consider how buyers will view it. For example we once saw a Hot Tub in the middle of the basement. Not only did the entire house smell like it buyers where not impressed.
Any Upgrades?
If you have maintained and upgraded your home it will likely fetch more when it hits the market. Kitchens, Bathrooms, and Basements often add the most value. It is important to keep an eye on neighbourhood values before completing large scale renos.
Current Market & Economic Outlook
Another big factor is status of the current market. Both the local and more regional market. If we are experiencing an economic downturn that can make it harder for your home to sell. If the market has a low inventory then your home will be more attractive, may attract multiple offers, and will likely sell over list.