Whether you intend to hold on to the property you own or eventually sell it to someone in the housing
market, it’s always good to know how much your home is worth. So when you wonder about your home valuation, here are a few tips.
It may be intimidating for you to think about how to get to the actual current market value, especially if you’re not naturally good with numbers.
And, it’s certainly true that knowing your home’s value can make you worry more about home repairs, insurance, and property tax.
That being said, the effort is certainly worth it if you want more options for your financial future or if you
want to take a more active role in your local real estate industry.
Below is a list that will help you learn more about your home valuation, plus how to go about the process. This guide should prove useful for new homeowners, property owners who want advanced knowledge of the Guelph real estate market
Or, it could be good for those who are up-and-coming real estate agents, realtors, and real estate recruiters who’ve already picked up on the basics from websites like www.brokerkit.com.
Why Learn About Your Home Valuation?
You’ll Have a Good Awareness of How the Housing Market Works
The most obvious reason to seek out the numbers behind your homes valuation is to get a better grip on
America’s housing market, which is known for moving fast and being vastly populated.
It’s good to learn about what factors into your home’s value, like its condition and the desirability of your neighbourhood and differences between home value estimates like fair market value, appraised value, and assessed value.
Mastery of these concepts will generally help you make well-informed decisions about buying or
selling property and choosing the right Guelph real estate agents to transact with.
You’ll Get Your Money’s Worth If You End Up Selling Your Home
Another highly practical reason to get a home valuation is that the information will come in
handy if you want to sell your home.
Having an accurate home appraisal of your home’s value, plus factors like taxes, will allow you to determine the ideal price. It will also help you strike a balance between
underselling your home and advertising it at a price that would turn off knowledgeable home buyers.
You’ll Be in a Better Position to Carry Out the Right Home Improvement Projects
You should also learn your home valuation in relation to home improvement projects
that you intend to carry out.
Know the difference between your property’s baseline value versus how
much it will be worth when you add upgrades like a new insulation system or a renovated bathroom.
You’ll Be Able to Protect the Property with the Right Insurance Policy
It would also serve you well to know your home’s value when it comes to securing your homeowner’s
insurance policy. The cost and coverage of the policy are usually based on the property’s value.
Knowing the latter can change due to factors like home improvement, you should constantly seek out a
policy that will afford you a commensurate level of protection.
You’ll Be at an Advantage if You Join the Real Estate Industry
Lastly, if you intend to learn how to become a real estate agent, keeping track of property values will be
part and parcel of the job. If there’s one thing you should know how to do before becoming a professional in the industry, it’s how to calculate your home’s value—and how to go about the process
for other properties you’ll deal with.
Calculating Your Home valuation: 2 Useful Tips
Get Your Home Appraised by a Qualified Professional
A beginner to the process of property valuation should defer to the knowledge and skills of qualified
professionals. Hire a professional appraiser or look for credible real estate agents who offer comparative
market analysis services.
Having a CMA (Certified Market Analysis) done by a Guelph realtor will include recent comparable homes sold. This will give you an idea of the value of your home. Some of the considerations by Realtors include location, condition, age and improvements made.
Refer to a Home Value Estimator
Automated valuation models, or AVMs, can be very useful for comparing ballpark prices among
properties whose value and details are publicly available. One of the most popular ones in Canada is HouseSigma.
Just remember that all figures from home value estimators that rely on AVMs should be taken with a grain of salt. As a result, given that the data that these estimates are based on are not always accurate or complete.
Takeaway: The Importance of Getting Numbers on the Value of Your Home
If you put in the effort to accurately appraise your home, it will be to your benefit as a buyer, seller, or
future real estate industry insider.
Make it a habit to track your home’s value throughout the years, to appraise it at least on an annual basis. As well, to factor it into big life decisions like where you’ll live and how you’ll earn your income in the long term.
If you have any more questions on the Guelph real estate market, give Beth and Ryan’s team a call! We’d be happy to help.