When it comes to home values everyone knows the basics. Everyone knows that the location (the golden real estate principle), number of bedrooms, and the condition all affect the home's value. Everyone recognizes that a large estate home in Rosedale will always be worth more than a 400 sq.ft. studio in North York.
There are however smaller factors though that homeowners often overlook when comparing their home to other properties. Some of these overlooked factors can have a big impact and need to be accounted for when figuring out what your Toronto home or condo is worth.
Here are 5 factors that impact your Toronto home value that you may not have considered.
1. The worst (or best) house on the street
Everyone has heard, "it's always good to have the worst house on the best street". This is usually true but there are exceptions to this rule.
Having the cheapest, or the most expensive, home in a neighbourhood can make it harder to sell. People have an expectation of what type of home is in a particular neighbourhood. If your home is not like the average home in your neighbourhood, it can make it harder to find a buyer or command the highest price possible for your property.
Being average when it comes to real estate and achieving FMV (fair market value) for your home is easiest if your home fits what buyers are expecting to find. This doesn't mean the nicest house or the worst house won't sell, it just means it's harder to achieve outstanding results on those properties.
2. Sketchy neighbours next door
The properties around your home can impact the value of your home too. If your neighbours partake in keg stand contests or attach weird stuff to their home, it's going to reflect poorly on the perception people have of your home. The last thing a buyer wants to see when approaching a house for sale is a home covered in dolls...
The photo above is 100% real and the house is located in Leslieville... imagine being the neighbour trying to sell with this next door....
We've all seen Neighbors with Zac Efron and Seth Rogen too. It may have been funny to laugh at their neighbour woes in theatres, but imagine if that was your life.
Hopefully you have neighbours that maintain their property, aren't noisy, and respect those around them. If those are your neighbours, it's probably having a positive impact on prices in the neighbourhood. Thank your neighbour next time you see them and don't forget to cut your front lawn to do your part in keeping up neighbourhood appearances.
3. The Starbucks Effect
Want to know where values are likely highest and will appreciate at above-average rates? Simply look where Starbucks is opening new locations in your city. Why? It's been proven that Starbucks locations in your neighbourhood have a positive impact on prices, the rate at which properties appreciate at and homes even hold their value better during a market correction when a Starbucks is nearby.
It makes sense when you think about it, Starbucks is a multi-billion dollar company with almost 27,000 locations worldwide that sells coffee beverages for $10. Being able to spot real estate trends and get into neighbourhoods as they are starting to gentrify is smart business for them.
So next time you're sipping on that $8.00 non-fat Chai latte triple whipped beverage on a Sunday morning, don't feel too guilty... the coffee shop you're sitting in is good for your property value!
4. Technology in the home
Most people don't think much adding smart home technology until something breaks.
With younger generations jumping into the housing market today, having modern technology like WiFi thermostats or remote-controlled lighting, can impact the value of your home. Adding this tech to your home doesn't cost millions. Most items are very affordable.
A good quality WiFi thermostat starts at under $200. When you factor in the savings, it's a no-brainer, EcoBee reports an average savings of 32% on your heating and energy bill. Plus let's be real, how great is it to be able to lower the temperature from the comfort of the sofa. WiFi thermostats are also easy to install in most homes. I recently installed one in my condo myself and it took me less than 15-minutes. If you aren't the DIY type you can get it installed same-day with a service like Jiffy on Demand.
LED lighting, WiFi connected light switches, WiFi connected video doorbells, and smart motion sensors are all great additions that can usually be set up within an hour. These devices make life a little easier and can save you money on your monthly bills.
These little things can also make your home stand out from the competition when selling. Plus, it's really just cool to be able to say, "Hey Siri, goodnight." and have the lights turn-off and the thermostat temperature lowered "automagically".
5. How the home is marketed
This is probably the most overlooked factor in real estate today. The marketing strategy is what drives buyers to the home in today's marketplace. Without a real marketing plan you'll run the risk of not getting your home in front of the right buyers.
Your home needs to be promoted to people based on how they are looking for real estate. You need high-quality photos, professional video, 3D virtual tours (like the one below) and quality written copy for the home.
Without these things in today's world your property is likely getting overlooked by buyers, as 98% of buyers are looking online for their next home. Whoever you list your home with, make sure that agent has a strong understanding of today's marketing best-practices.
Are you thinking of selling?
find out what it's really worth with a pin-point accurate home evaluation.