What is the value of your house in today’s market? It’s not an easy question to answer. If the current market has taught us anything, it’s that the real estate market has its ups and downs, and prices can fluctuate.

The cycles can have some rhyme and rhythm, such as the market picking up in the spring and slowing down in the fall. Other times, we don’t need to look any further than world events to understand what is happening. Or the situation really can be unpredictable.

Now, more than ever, it’s essential to have accurate data that is up-to-date before you can form your selling strategy. Today, we’ll talk about how to find out how much your house is worth.

Knowing how much your house could earn is the foundation of a top dollar sale. For more information, book a free home valuation with one of our Hamilton and Burlington real estate experts.

How to Determine Fair Market Value

What is fair market value vs assess value vs how much your home actually sells for? These are all different ways of estimating a property value. To add to the confusion, all three numbers can vary.

• Fair market value represents how much your home is worth as determined by the bank or a property appraiser.
• Assessed value is what the city uses to determine how much your property taxes will be for the year.
• How much your house sells for is what you end up with after your transaction is finalized. To a large extent, it is market driven. All the same, a well-though-out strategy when it comes to pricing and marketing can help you maximize your results in every way possible.

How Many Homeowners Calculate Property Value

Without professional guidance, homeowners use several methods to determine what they believe their home is worth. Unfortunately, many of these are based on myths and outdated information. Here are a few examples we often encounter:

• Looking at the past. This happens all of the time, and it can be especially troubling if you’ve had a home evaluation, but the market has since cooled. You simply can’t rely on past information when it comes to real estate, even if it was only a few months ago.
• Listening to friends and relatives. Your family and friends want the best for you. They want you to earn top dollar when you sell your home, but just because they sold at a certain amount does not mean you will get the same outcome.
• What the competition is doing. Your neighbour may list their house at $2 million, and that may be a number you’d love to achieve. The question is, did it sell? Or did it languish on the market for months? Basing your price on the competition is better than guessing, but it is still not an accurate estimate. You need factual data based on what actually sells.

Knowing the value of your home is just the start. Here are some other things that can help you get the best return on your investment:

• How to Prepare Your Home for a First-Time Buyer
• How to Stand Out in a Changing Real Estate Market
• The Power of Staging When Selling Your Home

A Comparative Market Analysis: Your Most Accurate Tool

A Comparative Market Analysis is the number one resource real estate agents rely on to get an accurate estimate of the value of a home. It is meticulously detailed, looking at the residence itself, the construction, the age, the layout and past and current activity. Here is a breakdown of what we will cover:

• The size of the home by square footage. Obviously, larger homes are typically are valued higher, but there are other factors to consider.
• The layout of the home. Is it an open-concept, or are the rooms separate? In the current market, younger buyers often prefer open-concept designs, but not always. Anyone with a sensitivity to noise or who values privacy can appreciate a closed floor plan.
• What is the housing structure? It could be a detached family home, a townhouse, a semi-detached or a condo.
• How many bedrooms and bathrooms are in the home? Is the plumbing roughed in for an additional bathroom if the new owner wishes?
• How old is the home? The newer the build, the more valuable it is, as a rule.
• What renovations and improvements have been made? With strategic updates, the value of a resale home can equal or surpass a new build, especially in a desirable neighbourhood.
• Where is the home located? If parks, schools, transit and other amenities are nearby, it makes your home more appealing to many buyers.
• What houses have sold in your neighbourhood recently, and for how much? (Again, we want to know how much a home actually sold for, not just the listing price. Your real estate agent will have access to these numbers.)

Most of the time, selling a house is a straightforward process. What if it’s not? You can find more in-depth guidance for anything you are facing in Challenges of Selling Your Home & How to Overcome Them.

Don’t Sweat the Shifting Market

A changing market is tough on everyone. It’s hard to accept that a house will not sell for as much as it would have a few short months ago.

However, real estate is never all doom and gloom, even when conditions no longer lean in your favour. There will always be opportunities for both buyers and sellers; you just need to know how to prepare for the best outcome in any situation.

As we’ve mentioned before, what constitutes “outstanding results” can be relative.

If you’re selling in a down market, your house might very well sell for less than it would have a few months prior. That’s a painful truth many homeowners have had to accept. Just remember that there is an upside.

Housing prices fluctuate. If they are down now, they will almost certainly rebound given enough time.

We like to quantify success by your purchasing power, not just the dollar figure.

News that your $1 million house has dropped 5% in value to $950,000 can be discouraging. It feels like a loss of $50,000 right out of your account.

By the same calculation, the $2 million home you want to upgrade to has also dropped in value by 5%, which means you save $100,000. In this case, falling prices work in your favour.

Does the news of a shifting market have you feeling stressed? Information is the best cure:

• How To Negotiate A Real Estate Contract
• Top 10 Questions to Be Ready For During an Open House
• 8 Important Things to Remember When Selling Your Home

Expert Negotiations Are Still a Must

Setting an attractive price point for your home is a critical first step. However, it is just the beginning. You will still need a real estate agent with extensive outreach who can market your home to the most likely buyers. And for the best possible results, you’ll need someone who can negotiate expertly on your behalf.

Market conditions can change in the blink of an eye, but a well-thought-out strategy helps you achieve and exceed your goals anytime.

Do you want expert guidance when selling your home? Reach out to our top agents in Hamilton & Burlington or call 905-332-9223 to connect with us right away. We are excited to help you get the best results in any market!