Updated: Apr 5, 2019
written by Charlie Schurman
Selling a home today can be stressful. You’ve probably spent years living and connecting with those you love in the very house you’re now selling. This means that you aren’t just worried about how much you’re going to get when you sell it but are also anxious about letting go of its sentimental value.
But while all of this worry is a part of selling your home, something crucial to know is the value of your home. Before you officially list the property and enter the real estate market, you must make sure you know its actual worth.
Why? What happens if I don’t know the actual value of my home? To answer this question, the following points will address some of the most common disadvantages you may face when you don’t know the true worth of your property.
You Will Attract Buyers
While you may be tempted to ask for more than the market value of your house, you may be putting the sale up for jeopardy. Some sellers in Prince Edward Island believe that setting a higher price is harmless because they’ll accept lower offers if that’s what is coming through. But these sellers don’t understand that this strategy can often backfire and put your property out of range for potential buyers.
For instance, you are unaware that the actual worth of your property is $390,000 according to the market price, and you list it as a $450,000 property. In this case, you may not attract buyers because the price you’ve set is way higher than other houses like yours. Remember, buyers will often be more prepared than sellers because they have done the research.
Smart Upgrades and Repairs
A common misconception that surrounds the real estate industry is that upgrades help in increasing the resale of your house. While there are some renovations you can make to help the house appear aesthetically pleasing, installing a higher-end efficient AC unit won’t increase the value by $10,000.
On the other hand, renovations to kitchen and bathrooms and upgrades to both roof and windows can help the price go up. However, if you don’t know the real worth of your house, you won’t be able to decide the upgrades and repairs that are needed to increase its worth.
Your House May Be on The Market for a Shorter Time
Currently, the Prince Edward Island real estate market is hot because it is spring. This means that your house could potentially receive multiple offers. However, if you aren’t sure about your price and list it on the market over or underpriced, there will less chance of it catching positive attention.
If your property hasn’t been sold for 30 days or more, it’s a sign the price is wrong. Moreover, if you leave the property too long the market, you risk getting low offers. You may even end up making less money than if you had priced the property correctly in the first place.
People Will Have Confidence in Your Property
While there are a lot of downfalls to listing your house for a higher price than its actual worth, setting a very low price is not wise. If the property is priced too low, potential buyers will wonder if there is something wrong and this may affect their final decision.
Not knowing the actual value of your home may cause you to sell it for a low price and this will mean that you’re unfortunately settling for less. On the other hand, if you do know the value of your home and it reflects the others in your neighborhood, buyers will feel more confident about their purchase.
You May Pay A Lower Property Tax Bill
Another major disadvantage of not knowing the value of your home is that you may be paying higher property taxes than due. Because property taxes are directly related to your home’s value, you can request an appeal for the tax bill if the province has assessed your property at a higher than the actual value. Using your knowledge about the real value of your home will reduce the property tax bill, and you can save even more!
How Can I Know the Real Worth of My Home?
While conducting both market research and neighborhood trends are key to the estimated value of your home, you should trust a reliable real estate agent to give you the actual worth. Because these agents have years of experience and know the The Island inside out, they’ll be better equipped to calculate a fair price.
I am a seasoned expert in the real estate industry of PEI and habe helped many sellers sell their homes at a fair price. So, if you don’t want to run into any trouble or face these disadvantages that come with not knowing the true value of your home, make sure that you hire a competent real estate agent.