Determining The Value Of Your Home
It may be tempting to use an online calculator to estimate the value of your home, but figuring out the accurate valuation is much more complicated.
There are many variables that factor into a home’s value.
Here are 5 things you should take into account when determining the accurate value of your property:
1. The market.
How much have similar homes sold for in the last few months? Is it a buyer’s market or a seller’s market? How much competition is there in the neighborhood? For example, is your condo the only two-bedroom for sale or are there a slew of other similar homes on the market?
Keep in mind that the value of your home is influenced by inventory levels and the amount of buyers out there competing for this inventory.
2. The location.
Pricing can vary greatly depending on the neighborhood, a given street within a neighborhood, and even the side of the street where the home is located. The location of your unit within a building will also affect its value. For instance, a penthouse unit that is flooded with sunlight may be worth more than a garden level unit with small windows and a lack of sunlight.
3. The renovations.
Do you still have a 70’s kitchen or is your home new construction? The upgrades in your home, or lack thereof, will affect what a buyer is willing to pay.
Should you renovate before you sell? That’s an entirely different topic that you can learn more about here.
4. The layout.
Do you have an open concept living space with a large kitchen? Does your open concept have an island and also room for a dining table? Or do you have a galley kitchen, with a living space just large enough for a sofa but no space for a dining table?
The flow and layout of your home will influence how much prospective buyers are willing to pay for it.
5. The amenities.
Does your home have private outdoor space, central air and in-unit laundry? Does it have garage parking or an elevator? What other features does your home have that buyers would be interested in paying top dollar for?
After considering these 5 key factors, it’s now time to talk to an experienced realtor. Ideally, your chosen real estate agent is actively selling property in your area and can therefore accurately advise you on the estimated value of your home. Keep in mind that your agent can only speculate what your home will sell for. Ultimately, the buyers decide the price.