What Is My Home Worth in Fredericton, NB?
If you’ve owned your home for a few years, you’ve probably wondered at some point... what would my house actually sell for today?
Maybe you’re thinking about selling, considering a move in the next year or two, or you’re simply curious about how much your home has changed in value.
While it would be nice if there were one simple number to look at, determining what a home is worth isn’t quite that straightforward. Your home’s market value is influenced by several different factors, and the market itself is always changing.
Here’s what I look at when determining what a home could sell for in the Fredericton market.
1. Recent Sales in Your Area
One of the biggest factors in determining your home’s value is what similar properties have actually sold for recently.
These are often referred to as comparable sales, or “comps.”
I’ll look at homes with similarities to yours, including location, size, age, number of bedrooms and bathrooms, condition, property type and other features.
The important part here is sold price — not just list price. A home can be listed for any amount, but what buyers are actually willing to pay gives us much more useful information about the current market.
2. Your Location
We all know the saying: location, location, location....and there’s a reason for it.
Two very similar homes can sell for different amounts depending on where they’re located. Neighbourhood, lot, proximity to amenities, schools, traffic, surrounding properties and even where a home sits within a particular neighbourhood can influence buyer demand.
That’s also why comparing your home to one across town isn’t always going to give you an accurate picture of its value.
3. The Size & Features of Your Home
Square footage matters, but it isn’t the only thing buyers look at.
The number of bedrooms and bathrooms, layout, finished living space, garage, basement, lot size and other features can all affect how your property compares to other homes on the market.
Certain features may also be more desirable to buyers depending on what’s currently available.
4. Condition & Updates
The condition of your home can make a difference in both its value and how buyers respond to it.
Updates to kitchens, bathrooms, flooring, windows, roofing, heating systems and other major components can all factor into a home’s marketability.
But this doesn’t mean every renovation gives you back exactly what you spent.
Spending $30,000 on an improvement doesn’t automatically add $30,000 to your home’s value. Some updates are more important to buyers than others, and this is something I can help you look at before you decide to spend money preparing your home for sale.
5. What’s Currently for Sale
We don’t only look backward at what’s already sold. We also need to look at what your home would be competing against if it went on the market today.
If there are several similar homes available at the same time, buyers have more choices. If inventory is low and there’s strong demand for your type of property, that can create a very different situation.
This is one of the reasons your home’s value isn’t a number that stays the same forever. The market around it is constantly changing.
6. Current Market Conditions
The Fredericton real estate market can change throughout the year and from one year to the next.
Inventory, buyer demand, interest rates, time of year and other market conditions can all influence what buyers are willing and able to pay.
A price opinion from a year or two ago may look completely different today, even if you haven’t changed anything about your house.
What About My Property Assessment?
This is one I hear a lot!
Your property assessment and your home’s current market value are two different things.
Property assessments are used in the property taxation process, while market value looks at what your home could reasonably sell for in the current real estate market.
When determining a potential listing price, I look at factors such as recent comparable sales, current competition, your home’s condition, features, location and overall market conditions.
So, while your property assessment is one piece of information about your property, it shouldn’t be used on its own to determine what your home could sell for today.
So... What Is Your Home Worth?
The answer is: it depends on your home and what’s happening in the market right now.
And you don’t need to be ready to sell tomorrow to find out.
If you’ve been wondering what your home could be worth, I’d be happy to take a look at the property, review recent sales and current competition, and give you a better idea of where your home may fall in today’s market.
Whether you’re thinking about selling soon, planning a move down the road or you’re simply curious, there’s no pressure to list.
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