How Your Home’s Value is Determined

Posted by Kent Braaten on Tuesday, April 14th, 2020 at 12:00pm.

If you have been thinking about selling your home, likely the most pressing question on your mind is, “How much is my home actually worth?” Much like how a car’s value starts to change the moment you drive it off the dealer’s lot, your home’s value similarly changes over time. And depending on a variety of factors that influence how the real estate market is today, that could mean appreciation or depreciation. 

The best way to get a quick and free assessment of your home’s valuation is to have a comparative market analysis done by an experienced and knowledgeable Saskatoon REALTOR®. They use real market data and real buyer experiences to help you get an accurate understanding of what people are willing to pay for your home right now. Here are some of the things they will look at when determining your home’s value:

Comparables

Comparables are similar properties to your own that have been on the market within the last 6-12 months in your community. They will usually be of similar size and style, with similar features and location, and they may or may not have sold.

Similar homes to yours that have recently sold will help your REALTOR® to determine what buyer’s have been willing to pay. Similar homes that have been withdrawn or expired, on the other hand, will show your agent what buyer’s aren’t looking to pay for a home like yours. 

Size

Speaking very broadly, the one factor that will usually have the most impact on your home’s value will be its size. At the very core of it all, the livable space is what buyers are paying for and to a very loose extent, bigger is often better. 

Location

While any buyer can change the aesthetics of a home fairly easily, location is one factor that cannot be changed when buying a house. This means it plays a large role in determining the home’s value. 

Homes in newer neighborhoods, such as Evergreen or Stonebridge, usually add more value to a property than those located in older ones. Similarly, homes with easy access to amenities, such as schools and grocery stores, will be worth more than those that require a commute.

Other location factors that may help to either add or detract from your home’s value include things such as views, crime rates, and even employment opportunities. 

Age & Condition

The newer the car, the more you might get back at the dealership, right? Well, the same rules apply in real estate. Generally speaking, the newer the home, the more you’ll likely get for it. This all comes down to the amount of expected maintenance the buyer can expect to be doing in the coming years. Older homes usually require more work, sometimes as soon as possession date, detracting from the buyer’s immediate quality of life from the moment they move in. Newer homes, on the other hand, tend to be more “move-in ready”—having newer plumbing and electrical systems that can be expected to function well for quite some time. 

Updates & Upgrades

Renovations and remodels are often the first thing potential sellers will think of when making steps to sell a house. And while it’s true that some upgrades and updates in the home can help increase a home’s value, not all renovations are made equal when it comes to the return on investment. 

Usually, the updates and upgrades that will make the most impact on your home’s value will be those that help to improve a buyer’s quality of life. Some of the best ones include kitchen remodels, adding high-efficiency appliances, installing smart features, and re-shingling the roof. Some of the least impactful tend to be ones that might add more work, like a pool, hot tub, or intricate garden landscaping. 

When considering whether or not to move forward with an upgrade to improve your home’s value, always ask yourself, “How much maintenance will this require?” While it may seem great up front, if it requires more work later on, it may not seem as valuable to a potential buyer.

Local Market

Last, but certainly not least, when determining your home’s value, your REALTOR® will, of course, take into consideration the current state of the local Saskatoon market. In a seller’s market, where there is more demand for homes than are available, you may be able to ask slightly more than usual. In a buyer’s market, where there are more homes than available buyers, you may want to price more competitively to attract attention your way. 

 

When determining what your home is worth in today’s market, all these factors play a big role in helping you find the best price. And a knowledgeable, experienced REALTOR® will take them all into consideration. Remember, your home is only worth what someone else is willing to pay for it, so make sure the price is right for the quickest, easiest sale!

Ready to find out what your home is actually worth? Request your free home evaluation today!

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