Whether you are planning to buy a home in Canada or sell it, you must know what it’s worth in the Canada Real Estate market. Property price fluctuations not only depend on how the property is built, its size and structure, but multiple other factors like economy, location, neighbourhood, and even the technology powering the house.
So, if you are trying to figure out how much is your home worth, here are five factors that can help you determine it and help you with your real estate investing decisions. Let’s dive in and start with what is home value.
What is Home Value?
Home value is the price of residential property that the buyer and seller, after fair negotiation, agrees upon. The home value worth is dependent on three valuation processes namely, fair market value, appraised value, and assessed value. Let’s check in detail what they are:
3 Types of Home Valuation
When trying to find your home value, you will have to consider three types of valuation.
- Fair Market Value: The fair market value depends more on what buyers are ready to pay than what your home is worth. This is why when consulting a real estate agent, you will find them looking for prices of similar properties that buyers are agreeing upon.
- Appraised Value: Appraised value is the valuation of your home. If you hire an appraiser, they will inspect the structure, decor, number of rooms, facilities, etc., along with the renovations you have done in your home and will then give you the price. Mortgage lenders usually look at the appraised value when approving loans.
- Assessed Value: Government agencies like municipal corporations, etc., perform this valuation annually. A comparative evaluation of the property against present market conditions is conducted to determine if property taxes will be levied on the property based on its monetary value.
7 Surprising Factors That Influence Your Home Value
To find your home value you can either consult a real estate agent, access a home value calculator, check the concerned municipality website or hire an appraiser who helps you assess the monetary value of your property and find home worth.
However, if you also want to assess your property valuation on your own and increase it, then these are 7 interesting factors to keep in mind.
1. Your Home Location
The location of your property is a determining factor of how much it should cost. If you stay in or are looking for a home in a well-connected location having all the amenities nearby (for emergencies, transport, education, and entertainment), chances are its pricing will be way high as it offers convenience.
Suburban homes or properties on the city outskirts will cost much less in comparison. This is why having your own home in the city or a bustling neighbourhood is so convenient, not only for the time when you stay there but also when you want to sell it. The prices of such properties seldom go down.
2. Home Architecture
The worth of your home is directly proportional to how your home looks from the street. As the first impression is the last impression, its architecture should be such that it grabs attention.
When inside, the structure of the home should equally offer the dazzle of beauty and functionality via adequate space, strategically positioned stairs, balconies and rooms, bathroom amenities, drainage facilities, etc.
Additionally, be aware of the building materials as it is, ultimately, the structure of the house that offers durability and safety. If you are trying to sell your apartment, ensure it offers the same functional internal structure.
3. Home Decor
This will be applicable if you are trying to sell or buy a fully furnished home. When selling, ensure that the interiors are clean and presentable, as you would also expect the same if you were a buyer. Paint the walls in welcoming neutral shades that can be replaced easily if the buyer, after purchase, prefers to do so.
Clean home decor with freshly painted walls, well-maintained furnishings, amenities like refrigerator, microwave, etc., in a modular kitchen, well-facilitated bathroom, and a well-kept garden will have much more value in the market than the ones that aren’t.
Additionally, if you have a swimming pool, ensure to maintain it as well. And have its drainage facilities sorted before giving your home out for sale.
4. Age And Condition Of The House
The age of a home does not always lead to diminished prices. If you have an ancestral home with traditional architecture, then repairing and putting them up for sale would fetch multiple customers in the Canada real estate market.
Many buyers prefer vintage homes with old-world interiors over ones with modern and urban home decor. The traditional style also creates a good market value of home. However, check the condition of the various facilities of the house and upgrade them as required.
If you have a regular home or apartment, take note of how old it is. Accordingly plan the repairs that you would have to make. Depending on the damages over the years, you may need to repair walls. Reconstruct certain portions of the home altogether to make it sale-worthy.
5. Present Economic Conditions
Know about the current economic conditions before selling your home. A slow economy with limited employment, low GDP, etc., impacts the overall real estate market, resulting in negligible real estate investing. Selling your home under such circumstances would only incur losses as you won’t even get good buyers at that time. So, keep your eyes on real estate and economy news and updates so that you can determine how much is your home worth and when it is the best time for sale.
6. A Smart Home
Want to fascinate your buyers? Transform your home into a smart home by making simple installations, like smart doorbells, indoor and outdoor cameras, a smart thermostat, smoke detectors, virtual assistants, etc.
It will amaze the buyers if you sell a turnkey smart home to them. Additionally, all the safety-enhancing features will help bring better buyers offering faster conversions. As per multiple surveys, it is proved that buyers always get attracted to advanced technologies in their new home for better security and functionality.
Adding smart doorbells and security devices not only enhances your home features but also assures the buyer that they and their family will be safe in the home they are buying. Providing LED lights and energy-efficient appliances will further solidify the buyer-seller trust. Take it up a notch by syncing appliances to virtual assistants like Alexa.
7. Energy-Efficient Home
With large-scale environmental awareness worldwide, many buyers look for energy-efficient homes. So, if you want to stand out in the Canada real estate market and churn out a better home value, you can go ahead and install energy-efficient appliances for a truly eco-friendly home.
Simple improvements like double-paned windows, LED lights, improved attic insulation, rainwater harvesters in the garden, among others, can transform your home into an energy-saving abode.
If you have the budget, you can also go ahead and install solar panels on the roof. Being a popular energy conserving material, Canada real estate survey also states that solar panel installation on the roof increases the market value of your home.
Canada real estate is a newly expanding frontier for real estate investment. So, more people in the country are looking to increase the value of their homes. We have suggested many ideas to augment your home value worth. Attraction, location, efficiency, and smartness are four wheels that improve your home value.
However, if you are still wondering what your home value worth is, compare the rates before making any amendments to your home. Check out our other articles to get more information on Canada real estate.
Frequently Asked Questions (FAQs)
Do a Canada real estate market research to understand home value worth. Take a look at your locality and the things that need repair in your home. Upgrade the doors and windows, fix the landscaping and lightings. Replace the floors, upgrade your kitchen, Renovate bathrooms and washrooms, and paint the interior walls
A new paint job, storage space expansion, outdoor area renovation, smart and efficient appliance installation, improved home decor, etc., helps enhance the market value of home while selling.
An attractive foyer, remodeled outdoor, dining, and lobby areas, addition or repair of the pool and other outdoor amenities, installing smart and energy-efficient technologies, etc. Help enhance the market value of home.
Painting both the exterior and interior of your house raises your home value. Possibly makes it highly desirable amongst many buyers.