One of the greatest pleasures of owning a home is taking pride in making the new house you have purchased, a home – reflecting your style while it also becomes the heart of many memories. You invest uncountable hours in decorating, painting, gardening, and up keeping the lawn, growing more attached to your dearest home each and every day. However when the time comes to sell your home as your family grows, or perhaps as you decide that it’s time to downsize as your nest has emptied – It’s tough to put a price on what your home is really worth in today’s market. What might sell it for? Or how would the bank value your home as collateral for a new investment or in consolidating any debts you might have?
To determine the current market value of your home, the best solution is to hire an appraiser to give you an official determination based on various features of your home and comparable homes in your area that have recently sold. Specifically, an appraiser will look at:
- the square footage of your home
- the age of your home
- the location, in terms of your city and neighbourhood
- construction quality
- the number of bathrooms & bedrooms in the home
- the number of levels of the home that are finished
After taking an in-depth look at these areas, your appraiser will then take a look around your neighbourhood for homes that have recently sold that are comparable to your home in relation to all of these details as well as the final value that those homes were purchased for. Typically they will seek out 3 homes to use as a benchmark of value in today’s market, weighing the differences between these homes and yours to estimate the true value of your home today.
If you are looking to refinance your mortgage to help consolidate debt the bank will require an appraisal to be done before they approve your lending. However, if you are looking to sell your home and are trying to decide how much you should list your home for, you may not need to invest in a professional appraisal. Alternatively, you could do a little investigating yourself around your neighbourhood with the help of your Realtor®. Though you will want to be realistic in your asking price, you can’t disregard the fact that a home is truly worth with someone is willing to pay for it. In a hot market like ours in Barrie, bidding wars and homes being sold what seems like the moment they are listed is possible. With this in mind, it’s always a good idea to ask a few friends what they would be willing to pay for a home like yours in addition to seeking advice from your Realtor® before making your decision.