How to Avoid Paying Too Much for a House
Before you offer any seller a price for a property, there are a few facts you should to know. The asking price of a property does not necessarily reflect the "market value" of the home.
Below are a few questions you should check into prior to making an offer.
Is the property tax assessment accurate? If not, find out why
For the city of Edmonton, you can find out the tax assessment value of any residential property at https://maps.edmonton.ca/map.aspx. Although the amount the city thinks the property is worth does not necessarily reflect the true value. It is only used as a starting point.
Are real estate prices going up or coming down?
What is the latest real estate trend in that community? To determine if an Edmonton neighborhood's property values are going down or to tell if it is becoming one of Edmonton's hot spots, use the absorption rate tool.
How much was the bank property appraisal?
Financial institutions base their appraisals on the "Emily System", which is an accumulation of recently sold comparable properties. If there are no relevant sold Edmonton properties or if your home is more unique, independent appraisers can do a "cost to replace" appraisal. A good Edmonton real estate agent will complete a "Sold Comparative Market Analysis", (CMA) for you, prior to submitting an offer to purchase.
Is the property staged to avoid any defects?
Don't be fooled by the staging in a property. This is one of the biggest mistakes a buyer can make. When viewing a home, overlook the nice furniture and freshly painted walls. Take a close look at the overall condition of the property. An easy way to know if a dwelling is shifting is to open and close the windows and doors.
Do you know what a realistic offer should look like?
No matter if you are buying a home in Edmonton in a buyers market or a seller's market. Submitting a realistic offer is important. When a home is priced accordingly to the real estate market, don't try to "low ball" the seller, you will end up paying more because you have insulted them. Do your research.
For more information on submitting real estate offers in Edmonton and find an experienced buyer's agent, contact an Edmonton Homes & Gardens Real Estate Agent.