You might think you know the value of your home, and some people may be surprised when the real estate agent they’re working with comes back with a completely different number. Here, we’ll explain how the agent determines a home’s value.
Comparable Market Data
This may not be a surprise, but knowing what other houses are selling for goes a long way toward determining the value of your home. They’ll compare market data based on similar properties close to your home that have recently been sold. If you’re curious before finding an agent, there are online resources to help you with that information. An analysis will take into account the age of your home, how big it is, the style, and the condition of the home.
The Property
In addition to the comparable market data, the agent will get eyes on the whole property, taking into account the exterior and interior. They’ll look at the roof and the foundation, as well as the quality of landscaping on the yard. Inside, they’ll look at the appliances, including the furnace, water heater, and HVAC if you have it. They’ll also note how many rooms the home has: bedrooms, bathrooms, and closets. They’ll check plumbing and lighting and if the basement is finished or unfinished, as well as the quality of it as a whole. They will also check to see if there have been any upgrades and if there are things like hardwood floors or granite countertops.
They’ll probably ask if any renovations have been done, especially if it’s a modernized home.
Zoning
What your neighbourhood is zoned for is also something that is taken into consideration. Zoning is typically set at the municipal level and accounts for single homes, high-rise apartments, or condominiums. Zoning can change through a property’s life cycle, and there could be some surprises. Perhaps at one time, the property had fewer limitations on additions than it does now. Or maybe you find out that the area is transitioning into mixed-use. Be aware of zoning changes and what that might mean for your property and its value.
Views
We all know the saying, “location, location, location”. What people can see from the windows of the property that you want appraised is one thing an agent will use to determine the value of the home. Can they see the Niagara Escarpment, like some homes in Carlisle and surrounding areas? How about Lake Ontario? Maybe they’re on the waterfront in Georgian Bay and they can see the world’s largest freshwater archipelago? Not all homes have those views of course. If they’re in downtown Toronto, the view might be the skyline. Your agent will consider that and will also consider what it is that people are looking for.
Architecture
Your agent will take into consideration the architecture of your home. Was your home well laid out by the designer? Does it have appropriate storage space, or is there a lot of lost space? Are there high ceilings and plenty of natural light? All this is what your agent will note when determining the value.
There are a few things that can’t be helped before an agent comes to determine the value of your home. You can’t change the view or the zoning laws. If you’ve done renovation to allow for more natural light or get rid of ill-used space in a poorly designed home, your agent will note.
If you’re reading this and wondering what you can do to positively impact your home’s appraised value, take a walk outside the house and inside. Make note of any repairs that need to be done: check the roof, check the foundation. Have a look at your basement. All those details and more are what you want to explore if you want to raise the appraised value of your home.