How Assessments and Appraisals Differ

 Sometimes homeowners are genuinely surprised by the variation in the values attributed to their house or condo. Part of the reason for this confusion is the source and type of the value report. A property assessment by your municipality is likely undertaken to determine rates for taxation, or to identify areas requiring infrastructure or services. In such cases, where properties are primarily identified in general terms, such as by neighbourhood or by building type, it is unlikely the assessment would be an accurate representation of the current market value of your property. Alternatively, a bank’s property appraisal tends to be closer to a home’s market value, because a money lender needs reassurance that losses could be recovered in the event of a mortgage default. Still, such appraisals tend to be conservative, as mortgage holders are not in the business of speculation. By contrast, a market value assessment by a competent real estate professional is much more likely to identify a home’s true value, as it will take into account the property’s attributes, previous market activity, and current market demand.

Your home at a glance

Have you ever driven up to a restaurant and your first impression was disappointing? Perhaps the windows looked dark and gloomy, the façade was worn and unattractive or for some other reason it just didn't look like a tempting place to eat. It could still be a fantastic restaurant – a real gem. But, your first impression has soured your anticipation. If you still walk through the front door, it will likely be with the expectation of being disappointed. This scenario often plays out in the real estate market as well. A buyer drives up to a home for sale and quickly forms an impression based on what he sees "from the curb". That's why you'll hear real estate experts talk about the importance of "curb appeal". It's one of the most important selling points of a property. If you plan to put your home on the market, you obviously want your home to look as attractive as possible from the street. Fortunately, there are many simple things you can do to improve curb appeal. For example, you can trim shrubs and hedges, plant flowers, clean the walkway and driveway, paint the front door and garage door, and clean the exteriors of the windows. All these projects are relatively easy and inexpensive. Yet, each can make a dramatic improvement to how your home looks at first glance. Don't be like the great restaurant that’s hidden behind an unkept façade. Make sure your curb appeal reflects the overall value of your property. Looking for more advice on selling your home quickly and for the best price? Call today.