4 Factors That Affect Home Valuation

Factors that affect home valuation

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There are different reasons why a property will gain or lose value, and this will have an impact on the price that a buyer is willing to pay for a home. While it is true that some of the factors that affect home valuation on this list are out of the homeowner’s control, they’re all still important things to consider when putting a house on the market.

And there’s only one proven way a seller can get the full value of their property, and that’s selling without paying commission.

If you’re trying to determine the asking price of your home, it’s imperative that you take into account these factors that affect home valuation.


According to an article in The Globe and Mail, the area that you live in will be the biggest factor affecting your home’s price… buyers may be willing to pay more for a home that is close to schools, sports centres, stores, and other “valuable” services.

Also, is your home located in a natural disaster zone (such as floods)? This could affect its home valuation, too. The condition and quality of your neighbourhood could be factors that affect home valuation as well.

Other real estate

Quite often, in order to determine the value of a home, the price of the property over the course of several years will be considered. A home may also be compared to other respective houses in the area that are on the market (or were on the market) in order to come up with an “average” price. This could be based on homes that never sold, homes that have recently sold, or properties that have sold within the last few months.

Bells and whistles

How many “features” does your home have? HGTV outlined some of the most profitable renovations one can do on their house in order to increase its value, and the top projects with the best return on investment were: build a rental suite, paint, renovate kitchens and/or bathrooms, new flooring, and new light fixtures and door hardware (in fact, Canadian Real Estate magazine pointed out that, with the right touch, updating light fixtures and door hardware can generate a 60% to 75% ROI).

Most of these projects will help you not only get your money back, but it’s likely you’ll also make even more money on the final asking price of your home.


Economic factors that affect home valuation, such as interest rates, are completely out of the seller’s control, but it’s still something important to consider. A major spike in interest rates could mean less potential buyers, whereas when interest rates are low and purchasing a home is desirable, you could find yourself with a property that can be sold for much more.

Also, if an area is prone to foreclosures and short sales, this could be good news for a buyer and probably bad news for a seller. However, these are inevitable factors that affect home valuation.

If you’re ready to sell your home, forgo the commission and see how DuProprio.com can help.

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