6 Things You’ll Learn During Your Home Evaluation That Might Shock You
A home evaluation is often the first step towards putting your home on the market. However, this is also a step that is commonly put off for fear of getting bad news. A home evaluation is an integral part to the home selling process, and one that you can only procrastinate for so long. To help you get as well-prepared as possible, here are the top six things you’ll learn during your home evaluation that might shock you.
Neighbours Affect the Value of Your Home
If you have a neighbour with a comparable home who got himself into hot water, or had to sell quickly and sold for less than they may otherwise have gotten, you might be frustrated to learn that this data affects the value of your home. The value of your home is partially determined by recent sales in your area, whether they got a great price, or a not so great one.
Changes in the Area Have Affected Your Home’s Value
Similarly, it’s possible that changes in your neighbourhood, such as additional developments, newly constructed shopping areas, or the opening of new schools, have also affected the value of your home. Generally, new developments and amenities in the area will bring up the value of your home, while additions that are too close to your home that bring additional traffic to the area or block your home’s view may significantly lower your home’s value.
Your Property Assessment Matters, but Not That Much
You received your property assessment in the mail, and perhaps you were pleased with the number that states the value of your property. Or, perhaps you were unsatisfied with what you saw. You’ll quickly learn during your home evaluation that real-time, comparable real estate sales and data is much more valid in determining the value of your home than your property assessment.
Up or Down: a New Market to Deal with
Here’s where you can be equally pleasantly, or unpleasantly, surprised. The market conditions are likely much different than they were when you purchased your home, and you may be shocked to find out just how much the real estate market in Edmonton has changed in the meantime. If the market has fallen, you may be unpleasantly surprised to see little, if any, increase in the value of your home. On the contrary, you may be very happy to see that the value of your home has increased significantly as a result of a growing real estate market.
Renovations: You Might Not Get Your Cost Back
If the market suffers a significant dip around the time you wish to sell your home, and you’ve recently been prepping your home for sale by upgrading and undertaking renovations, you may find that given the state of the market, you aren’t able to recover the costs of the renovations. Or, if you’ve done renovations that don’t appeal to most buyers, they may see those renovations as a negative since they’ll have to be replace. Generally speaking, though, renovations increase property values, this isn’t always the case in a market that’s suffering.
A Long Wait for the Return You Expected
If you have a real estate agent complete your home evaluation for you, you might find that there is a possibility of selling your home at the price you wish for, but this may take a lot longer than you expected. Certain segments of the market move fast than others, some sales may take upwards of six months to one year no matter what the market is like.
Being prepared for the news you might receive during your home evaluation will certainly make the shock – if there is one – much less shocking. Knowing that you have a trusted real estate professional to help you through the home selling loops will certainly help as well.
About Sara MacLennan
Sara MacLennan is the Director of Marketing at Liv Real Estate and a licensed Real Estate Associate. The bulk of Sara’s experience and wealth of expertise lies in on-line technology and marketing both for agents and consumers. Sara is the former National Director for Interactive Marketing for Coldwell Banker Canada where she was responsible for an extensive training program traveling to offices across the country training agents and brokers on marketing and technology. Find Sara on Twitter @edmontonblogger.