Understanding how to maximize your home’s value should be a priority from the day you move in, not just when you’re ready to sell. Home ownership is an exciting achievement but your home is an investment in your future and needs to be treated the same way you would any other investment.

Here’s our breakdown of how you can estimate your home’s value and work to improve it when you sign up for our Home Advisory Club.

Why Knowing Your Home’s Value is Important

Knowing your home’s value is important for so many reasons, not just if you’re planning on selling. A lot of homeowners don’t know the importance of having an accurate estimation of their home’s value because they see it as a step in the selling process, not part of homeownership in general. 

But, here are just a few key reasons why knowing your home’s value is so important:

A clear estimate of your home’s value will give you an idea of the equity you could tap into. You could qualify for home equity loans or lines of credit based on your property’s value which you could then use to invest in your home to further maximize value.

Accurate valuation can help you ensure your home insurance policy covers everything you will need in the case of damages.

Financial and Retirement planning is much easier when you know the worth of your asset. A lot of people bank on their home as a key part of their financial future and if that’s the case, knowing where you stand is incredibly important.

Lastly, having an accurate picture of your home’s value can give you a better sense of market fluctuations and trends, so that when it is time to sell, you can better time the market.

What Factors Affect Your Home’s Value?

So many things go into estimating your home’s value but here are the key elements:

• Property Type
• Location and Local Market Trends
• Square Footage and Lot Size
• Age and Condition
• Upgrades and Renovations
• Schools, Transit Scores, and Walkability
• Recent Comparable Sales
• Unique Features (outdoor space, pools, smart home technology, etc.)

Your home’s value is going to fluctuate depending on all of the above factors, so it’s important to keep up with it on a regular basis. We offer our Home Advisory Club members a professional evaluation every 2 years.

How to Calculate Your Home’s Value

There are many home valuation calculators and online estimators out there but the truth is, none of them are going to be entirely accurate. These calculators are built using data analytics, algorithms and property records to build your estimate. All of these data points can give you a somewhat accurate picture of value but it will be missing some key elements about your property like interior conditions/design, unique features, and recent renovations. These calculators are also limited by their data, they typically don’t have real time market insights and won’t understand local market nuances.

To show how results can fluctuate with these calculators, we put the same address and property information into 4 different calculators and got the following results:

The absolute best way to get a REAL, accurate estimate of your home’s value is to have a professional come and evaluate your property. Our Home Advisory Club members receive a FREE in-person home evaluation within the first year of membership and every two years thereafter. One of our experienced Realtors will evaluate your home based on condition, current market trends and comparable listings in your area. With each evaluation you will receive a full report that outlines your home’s current value.

If you live in Ottawa or the surrounding areas, join our Home Advisory Club!

For things like loans and lines of credit, you will need to consult your lender and likely get an appraisal done by them. The same thing applies for property taxes and insurance policies. Evaluations done by Realtors are not the same as an appraisal and cannot be used for these purposes.

How To Maximize Your Home’s Value!

So you’ve done the calculators, talked to the bank/lender or a real estate professional and have a good idea of what your home is worth. Now it’s time to use that information to your advantage.

Like we said before, knowing your home’s value will give you insight into the equity you’ve built and could allow you to tap into that equity through a Home Equity Line of Credit (HELOC). If you qualify for a line of credit, you could use that money toward renovations that would further maximize your home’s value. This is one of the best ways to increase your home’s value while you still live there and bonus, you get to enjoy the renovations!

Another perk of joining our Home Advisory Club is that our team of expert Realtors will give you advice on what renovations and upgrades you could make to increase your home’s value and we have a list of trusted local services providers that we have carefully vetted to ensure our members get the best services.

Of course, a major perk of knowing your home’s value comes into play when you’re ready to sell. Selling your home is a big decision and you want to make sure you get the most out of your investment. When you have an accurate sense of your home’s value you can make better decisions when it comes time to sell. It can help you during negotiations with potential buyers to know the real market value of your home. It’s also helpful when vetting listing agents to see who has an accurate view of your property.

Why You Should Join our FREE Home Advisory Club!

Joining our Home Advisory Club is easy, free and comes with absolutely no obligation to sell your home with us.

Of course, we hope to have built a strong and lasting relationship with you so that when the time comes to sell your home, we’re the only professionals you’d like to work with. We’re confident that will be the case, but there is absolutely no pressure or obligation to work with us to sell your home.

By protecting your investment and helping you get the most out of your home, we hope to become a trusted source for your family’s real estate needs.

Sound like something you’d be interested in?