Last updated: August 10, 2022
Your home is one of the largest investments you will have in your lifetime, and it is both the largest asset and largest debt for Canadians. Understanding your home’s value can be helpful when it comes to selling your home, getting a list price or evaluating your real estate assets and home equity. There are many reasons why you should stay updated on the value of your home, such as:
You will want to be sure that you have the right amount of coverage, especially if your home’s value has gone up significantly.
Planning for retirement
According to an OSC Investor Office survey, 45% of pre-retired Ontario homeowners ages 45+ rely on rising home prices to fund their retirement.
Accessing home equity
You can use your home equity to help fund things such as home renovations or buying an investment property to generate income.
Planning your estate
Your home is a valuable asset and you will want to make sure that your home and other assets are distributed fairly after you pass away.
A large percentage of your overall net worth depends on the value of your property.
There are several factors that will affect your home’s market price, such as:
Age and condition
The condition of your house and when it was built will impact your home’s value. Depending on when your home was built, your house could be built of materials that are no longer preferable.
The location of your home is one of the most important factors. You can check and compare the prices of other comparable homes around your area to get a rough estimate of what your home’s value could be.
Detached, semi-detached, townhouses and condos are all different property types and will have an impact on your home’s value. In North America, detached and semi-detached are of higher value.
The size of your home will also have a significant impact on your home’s value. It’s important to be able to know the size of livable space as well as the size of your garage and balcony if you have it.
Interest rates will impact how much you can afford. Lower interest rates can help you afford more pricier homes but with the same mortgage payment.
Upgrades and renovations
You can increase the value of your home if you have had renovations done or added new appliances.
Market price trends impact your neighbourhood home prices
Use an online calculator
You can use the Perch home value estimate calculator to get an estimate of your home’s value. Most calculators will take into consideration the location, property type, renovations, when you purchased your home and how much you purchased it for. A home value estimate calculator will compare the average growth rates in your area and for your property type with your most recent valuation, such as a purchase price from a real estate appraiser.
Ask a realtor
A realtor is an experienced professional who knows the market and can do a market comparison report to give an estimate of what they think your home is worth.
You can hire a real estate appraiser to give you a valuation of your home. Real estate appraisers go through extensive training and are required to to be licensed depending on which province you live in. In Canada, appraisers are typically affiliated with the Canadian National Association of Real Estate Appraisers or the Appraisal Institute of Canada.
Research prices of similar properties in your neighborhood
You can use an online tool to search up recent sales of similar homes in your area to get an idea of what your home value could be. The asking price of these listings can give you an overall look at how properties are priced in your area.
Yes, your home value can fluctuate based on many factors such as the age of your home, the current condition, location, the market value of nearby properties, the economy and the current housing market.
You can increase your home’s value by making improvements to your property for functionally or even aesthetic purposes. Installing new kitchen cabinets or appliances, replacing an old roof or even expanding your home’s square footage can all increase the value of your home. Even small improvements like updating old light fixtures can have an impact on your home’s value.
Many homeowners use their home equity to refinance and get funds for home renovations and some refinance to get a better interest rate, a shorter loan term or a new type of mortgage. It’s important that you speak with your mortgage advisor to learn more about your refinancing options.