Let me make one thing clear. I love my job. There is nothing I would rather be doing. But there is one thing that frustrates me to no end. People often have unrealistic expectations about their property value, which leads to difficulties getting them the products they need.
The problem is that homeowners can seldom remove the sentimental value they have attached to the home from their valuation. And you know what, I understand how hard that can be. You have put a lot of yourself into the home. Created memories. You might have even raised your children there.
But at the end of the day, the sale or refinance of your home is a business transaction. As such, you need to leave the sentimentality behind and look at the facts. Here are a couple pointers so that you can set expectations appropriately:
What Have Other Properties in Your Neighbourhood Been Listed at and Sold For?
You need to forget about what you paid for the property, or how much you have spent on renovations and repairs. If houses in your neighbourhood sell for $300,000, it is not very likely that you can expect an appraisal at $500,000. Having the nicest house in the neighbourhood is not always a good thing.
How Long Were Those Properties on the Market For?
If properties in your neighbourhood are on the market for a long time, it is a good sign that the homes are not in demand. This could be for a number of reasons but always results in properties coming off the market or being sold for less than asking. Lenders and appraisers are aware of this and will adjust accordingly.
How Does Your Property Value Compare to the Others on the Market?
Compare the features of your property to those around you. Things like number of bedrooms, number of bathrooms, square footage, finished basements, size of the garage, and age of roof, windows, or mechanical systems will all have an impact.
If you want some advice, feel free to reach out and we would be happy to listen and point you in the right direction.
With Love, Clinton.