Learn How to Estimate Your Home's Price and Boost Its Market Value

Understanding what a home is really worth is something that interests everyone involved in a real estate transaction - buyers, sellers, and Realtors. Buyers must know the home’s fair value to make informed decisions, and Realtors use that insight to better assist clients with pricing, negotiation, and other crucial tasks. Meanwhile, you, the seller, need an accurate estimate of your home’s value to price the property competitively or decide on tapping into equity.

Up ahead, we will guide you through the most effective methods you can use to figure out the price of your home accurately. We will also share the proven strategies you can implement to help raise your home’s market value. Let’s begin!

A Look at the Top Home Price Estimation Methods and Their Reliability

1. Plug Your Home Details Into a House Value Calculator in Canada

One of the quickest and easiest ways to get an estimate of your property’s value is to use an online home value calculator. To get the home value estimate, you simply have to enter your home’s address and answer a few questions, such as the number of bedrooms and bathrooms and the size of the property. Behind the scenes, the calculator uses data from recent sales in your area, tax assessments, and property details to come up with an estimated value.

How Reliable Is This Home Price Estimation Method?

An online house value calculator in Canada offers speed and convenience, but their reliability is limited. These tools mostly rely on public records, and sometimes, that information isn’t current or entirely accurate. The online calculators also don’t consider renovations or unique features of your home, like a finished basement or new windows. So, while online calculators are great for a quick check, you must not rely on them alone when making critical decisions.

2. Get a Certified Appraiser to Evaluate Your Home’s Value

Appraisers are licensed professionals who will assess your home in person and generate a written report with a carefully calculated market value. During the appraisal, the professional will evaluate your property’s size, location, layout, upgrades, and other factors. They will also research recent comparable home sales in your neighbourhood to back up their valuation.

How Reliable Is This Home Price Estimation Method?

Professional appraisals are one of the most trusted methods for determining property value. Because appraisers evaluate your home in person, they account for things that online tools cannot.

3. Evaluate Recent Home Sales in Your Neighbourhood

Another effective way to find out your home’s worth is by looking at comparable properties, often referred to as “comps. To use this method, visit a real estate website that shows recently sold homes and find properties that closely match yours. You can use their search filters to find at least three strong comps that match your home in terms of size, layout, location, and other features.

Once you have found the comps, you will need to adjust their prices to account for any differences. For example, if the comp has one extra bedroom, subtract the bedroom’s estimated value from the home sale price. After adjusting for the key differences, take the range between the highest and lowest comps. Your home’s likely market value will fall somewhere in that middle range.

How Reliable Is This Home Price Estimation Method?

This home price estimation method can be quite reliable if you choose good comps and make smart adjustments. If you misjudge a comp or miss a critical detail, your home price estimate could be off.

4. Request a Comparative Market Analysis (CMA) Report from a Realtor

One of the best ways to get a well-informed and personalised home value estimate is to request a Comparative Market Analysis (CMA) from a Realtor. A CMA is a personalised report created by a realtor to estimate your home’s value based on recent sales, active listings, and current market trends in Ontario. The best part? Many Realtors offer CMAs for free, even if you haven’t officially hired them yet. It is a no-obligation way to gain insights into your home’s selling price.

How Reliable Is This Home Price Estimation Method?

A CMA can be very reliable, especially when prepared by an experienced Realtor who knows your local market inside and out. Real estate agents have access to up-to-date MLS data, and they bring their professional expertise into the equation.

Tried-and-True Methods to Increase What Your Home Is Worth

Now that you have figured out how to estimate your home’s value, your next big question will likely be: how do you increase that value? While some factors like location or overall market conditions are beyond your control, the condition of your home is something you can improve, and it plays a crucial role in determining your home’s value.

Here are a few ways to improve your home’s condition and potentially get a better return when it’s time to sell -

1. Boost Curb Appeal with Exterior Improvements

Source - Remodelling Cost vs. Value Report (2024)

Year after year, the Remodelling Cost vs. Value Report has proven that exterior upgrades offer the best return on investment. Here are a few of the best-performing exterior projects according to the 2024 Cost vs. Value Report, you might want to consider:

• Garage Door Replacement
• Steel Entry Door Installation
• Manufactured Stone Veneer Installation
• Fibreglass Grand Entrance Upgrade

2. Add Value with Key Interior Upgrades

Once you have made a great first impression outside, it is time to focus on the inside. The interior areas that typically catch a buyer’s eye are the kitchen and the bathrooms. Hence, upgrading these key areas in your home can offer a significant boost to your home’s value.

In the kitchen:

• Update old appliances with energy-efficient models
• Replace outdated countertops with materials like quartz or granite
• Upgrade lighting for a brighter, more functional space

In the bathroom:

• Swap out old faucets and showerheads for sleek, modern ones
• Re-tile the shower or floor for a clean, updated look
• Install a double vanity if space allows

3. Upgrade to a Smarter Home

Smart home technology is no longer just a trend - it is quickly becoming the new standard. Today’s buyers prefer homes with built-in tech that improves convenience, security, and energy efficiency. CNET says that your home qualifies as a smart home only if it includes at least two smart technologies:

• Smart thermostat
• Smart HVAC system
• Smart fire/carbon monoxide detectors
• Smart lighting
• Smart locks, smart alert systems or cameras
• Smart appliances (refrigerator, washers, dryers)
• Smart entertainment system
• Smart plant censors and a watering system

4. Get More From Your Square Footage

More square footage means more room to live, work, or entertain, and that makes your property more desirable. Here’s how you can increase your home’s usable space:

• Finish the basement
• Build a deck or patio
• Convert the attic
• Open up floor plans

Before You Act, Know the Value - Then Work to Improve It

Whether you are thinking about selling your home or taking out a home equity loan, the first thing you need to do is understand your property’s worth. You can use one or more of the methods mentioned above to get an accurate idea of your home’s current value. Once you have that estimate, shift your focus to increasing that number by making smart upgrades that fit your time and budget. In the end, whatever step you are planning next with your property, having a clear idea of your home’s worth and working to boost it can pay off for you as a homeowner.