What is my Home Worth?

When it comes to selling or refinancing your home, one of the first things you’ll likely ask is, “How much is my home worth?” The Leduc real estate market is constantly changing, and home prices shift along with it. This year, the average single-family home in Leduc sold for as much as $487,052 in September, compared to a low of $436,555 in January, marking an 11.6% difference. With such fluctuations, it can be challenging for homeowners to understand their home's true value. So how is this value determined, and how can you get an accurate estimate? Let’s explore how home values are calculated and how you can better understand your property’s worth. 

One of the most crucial factors in determining the value of your home is its location. A house in a sought-after neighborhood, close to good schools, shopping centers, parks, and other amenities, will typically be worth more than a similar home in a less desirable area. New developments in your area can also impact your home value in a positive, or regretfully, negative way. 

The size of your home—measured in square footage—directly affects its value. Larger homes tend to be worth more, but layout also matters. Homes with open, functional layouts or features like extra bedrooms, home offices, or outdoor spaces can command higher prices.

A well-maintained home, no matter its age, will typically have a higher value than one in poor condition. Modern upgrades like energy-efficient windows, a new roof, or updated kitchens and bathrooms can significantly boost your home’s value. However, be cautious - renovations aren’t always the best solution. It’s possible to over-improve your home for your neighborhood or invest in projects that may not appeal to the average buyer, making it harder to recover your costs. If you’re thinking about major renovations before selling, it’s a good idea to consult with your Realtor first.

Real estate markets fluctuate due to supply and demand, interest rates, and economic conditions. A Seller’s Market has been dominating Leduc since mid 2020. This happens when the demand for houses exceeds the supply available. This imbalance gives seller’s a distinct advantage, often resulting in favourable conditions for them. In a Sellers Market, you may get top dollar for your home. Conversely, a buyer's market can drive prices down as buyers have more options.

One of the most effective methods Realtors use to assess a home’s value is through comparable sales, commonly referred to as "comps." Comps are recently sold homes in your area that are similar to yours in terms of size, condition, age, and features. These sales provide a snapshot of current market trends and what buyers are willing to pay for homes like yours. 

A CMA is a free, no-obligation, detailed report conducted by a licensed Realtor. They analyze recent sales of comps, and adjust for your homes unique features, to provide a realistic picture of what your home could sell for in the current market. Experienced Realtors have in-depth knowledge of your local market, can provide a personalized analysis of your home's value, and can offer advice on which upgrades may boost your home’s selling price. CMAs are used by both buyers and sellers as they offer an informed estimate to help set a realistic sale price and help both parties negotiate effectively.

Mortgage lenders often require an appraisal during the refinancing or home buying process to ensure the property’s value supports the loan amount. For a fee, sometimes covered by the lender, the appraiser will conduct a thorough inspection of your property to provide an in-depth home valuation. 

We often get asked if a tax assessment can be used to determine a home’s value. In short, the answer is no. While your tax assessment can give you a ballpark figure, it is not an accurate tool for predicting value. Tax assessments are typically conducted by government agencies to determine property taxes, and they are based on broad market data that may not fully reflect the current real estate market or the specific condition and features of your home.

Homeowners often overestimate their home’s value due to emotional attachment. Overpricing your home just to “see what happens” can be a costly error. The most action on a listing usually happens within the first two weeks, if your home fails to attract buyers right off the start, there is a chance your listing can become stale, buried in the stack of new listings. The number of days on market can be viewed as an indicator as to the desirability of your home. Leduc’s average days on market in September 2024 was 30 days. A home that has been on the market for much longer than that starts to raise red flags with the buyer. 

The broader housing market doesn’t always reflect what’s happening in your local area, so it’s important to stay up to date on local trends. The Jason Rustand Team provides monthly Market Reports to keep you informed about what’s happening in Leduc, along with columns and blogs filled with real estate tips to help you get the most out of your purchase or sale. Visit us at WeSellLeduc.com, or follow us on Facebook and Instagram. Our goal is to keep you informed, so you can make the best decisions for your real estate needs. 

Understanding your home’s value is essential whether you're planning to sell, refinance, or just curious about your home equity. The best approach is to work with a knowledgeable Realtor, who will give you a more personalized and accurate view of what your home is truly worth. Whether you plan to sell immediately or in the future, knowing your home’s value empowers you to make smart real estate decisions. Contact the Jason Rustand Team for a complimentary Comparative Market Evaluation and take the first step toward selling your home with confidence!