How Much Is My House Worth?

Looking to find out how much your home is worth? Whether you’re looking to sell or just curious, Wahi can help you estimate your home’s worth with ease. Below, we dive into all there is to know about property value, including the three types of home valuation, the factors impacting home value, and finally, how to determine your home’s value. Keep reading to learn more!

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The Three Types of Home Valuation

Home valuations can differ significantly depending on which kind you’re using. So before you get a home value estimate, it’s important to understand the three distinct types. 

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Fair market value

Fair market value is the value of your home based on what comparable homes have sold for in the area. To determine the fair market value of your home, you or your REALTOR® will need to research the sale price of homes similar to yours in the area. Please note that a home similar to yours will be one with the same number of bedrooms and bathrooms, similar square footage, and comparable amenities and outdoor space.

Assessed value

The assessed value of a home is the dollar value of the property used by local tax assessors to assign property taxes. Tax assessors calculate the assessed values of properties based on several factors, including whether income is generated from the property, if the home is exempt from certain taxes, and if improvements or renovations have been done on the property. Tax assessors may also use the fair market value and the appraised value (more on that below) when calculating the assessed value. Typically, the assessed value is below fair market value and therefore isn’t necessarily an accurate representation of how much a home will sell for. 

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Appraised value

Finally, a licensed home appraiser determines the appraised value of a home. Appraisers do the same comparative market analysis as you would to determine fair market value. However, on top of this, they also visit the property and consider other factors like size, location, condition, and completed improvements or renovations. A home’s appraised value is typically what mortgage lenders need before agreeing to grant a mortgage loan or refinance a mortgage for a borrower.

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Factors Impacting Your Home’s Value

Many factors impact your home’s value. While size and location are the obvious ones, others like renovations and age can also play a major role. There are also factors beyond a seller’s control like the local housing market and interest rates that can also affect the value of your home. Below is a list of some of the key factors impacting property value. 

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• Location: Location is one of the most important factors in determining the value of a home. Not only can the city your home is located in affect the price, but so too can the specific neighbourhood and even street. Homes located in safe neighbourhoods with low crime rates, good schools, and lots of amenities are often valued higher. 
• Size: Size is another factor that can significantly impact your home’s value. The square footage of the home is only part of the size. The overall size of the land that the house is on, as well as the square footage of detached structures like garages, will also be considered. 
• Age and condition: Older homes tend to come with less efficient systems (for example, HVAC, electrical, and plumbing) and greater maintenance requirements, which typically lead to lower valuations. Depending on the age of the home, it might have even been built with hazardous materials like asbestos or Poly-B plumbing, which can further devalue them. In contrast, new homes with energy-efficient systems that are in great condition may be valued higher.  
• Property type: There are many types of homes on the market today, from condos and townhouses to detached and semi-detached homes. Generally, detached and semi-detached homes are the most expensive on the market. 
• Renovations and improvements: Renovating a home has the potential to increase its home value. So if your home was recently remodelled (for example, a kitchen upgrade or new appliances or HVAC systems), it might have a higher valuation. 
• Local housing market: The state of the local housing market (if it’s a buyer’s market or a seller’s market) can significantly impact the value of your home and how much it’s likely to sell for. 
• Interest rates: Interest rates impact how much prospective buyers can afford to spend on a home, which in turn, can affect home prices.

How to Determine House Value

Now that you know the three types of home valuation and the factors that impact a home’s value, let’s delve into how a seller can determine the value of their home. 

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1. Look up the prices of similar properties in your area

One of the most effective ways of determining the value of your home is to research the prices of similar homes in the area. Visit some online real estate marketplaces to find listings for similar homes in your area. Look at the asking price of these homes, as well as how long they’ve been on the market. Always take asking prices with a grain of salt, as asking prices do not always translate to sale prices.

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2. Estimate your property’s fair market value from its assessed value

As mentioned above, tax assessors often base their calculations on the fair market value of a home, so determining the assessed value can give you an idea of the fair market value. To find out the assessed value, contact your local municipality. In Ontario, the Municipal Property Assessment Corporation (MPAC) is responsible for providing homeowners with assessed property values. Wahi also offers a free tool called the 

Bestimator, which provides an estimate of the value of your home.

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3. Research real estate trends in your local housing market

Take the time to research real estate trends in your local housing market. By doing so, you can determine how much home prices have increased over the years. It may also help you determine the best time of year to sell based on when your local market typically favours buyers or sellers.