If you want to buy a home but you’re not a millionaire, there are only so many affordable neighbourhoods left in the Greater Toronto Area (GTA), and even then, becoming a homeowner is difficult if not near impossible—especially with higher interest rates and more vigorous mortgage stress tests.
However, one neighbourhood in Mississauga was deemed one of the last affordable in the GTA in a recent Toronto Life article.
As everyone know, Mississauga is not the most affordable city to buy a home in general. According to a recent Royal LePage report, the aggregate price of a home (combining all home types, including two-story homes, bungalows and condos) sits at $758,750. A two-story home typically costs buyers $873,194 (which is down from the $1 million+ highs we were seeing this past winter).
But at a time when the housing market is still hot and it’s hard to find a reasonably priced home anywhere, one pocket of land in Mississauga still hits the mark as a hot GTA neighbourhood.
“There’s hope for non-millionaires who just want a half-decent house in a nice area with good schools,” says Steve Kupferman of Toronto Life.
Can you guess where?
According to Toronto Life, the Hurontario neighbourhood (namely Heritage Hills) is one of the last affordable neighbourhoods – of 20 – to buy a home, coming in at number 17.
Boasting an average sale price of $651,671, Toronto Life says “it’s easy for middle-class families to score an affordable home just steps away from the urban core.”
The magazine calls out the surrealness of seeing a massive cluster of distinctly urban high-rises from the window of your suburban low-rise. That said, they were right to single out the neighbourhood built around a large public park, as it’s pretty ideal for families—especially since it boasts paths to the two schools in the area: St. Matthew Elementary and Huntington Ridge Public School.
The house Toronto Life zeroed in on? A detached three-bedroom house on Bourget Drive that was listed for $789,888 and sold for $775,000.
But what counts as a hot neighbourhood in the GTA, you ask?
According to Toronto Life’s list of the last affordable neighbourhoods in the GTA, it’s “a good-sized house in a safe neighbourhood, with decent schools and leafy green space and a commute that isn’t soul-crushing.”
Without breaking the bank on a million-dollar home, of course, because not all of us are millionaires (yet?!).
This list was curated based on real estate data across the GTA, as well as information from brokers and residents. Researchers also examined access to parks, schools, shopping areas, and transportation into downtown Toronto to determine the best places to live for under a million bucks.
“They’re the last best hope for the desperate house hunter—and the neighbourhoods everyone will be jockeying to buy into 10 years from now,” says Kupferman.
A home is, of course, a huge investment, and you don’t want to be overwhelmed with debt just for a place to call your own. Though that might still be the case if you’re trying to buy a home in the GTA anytime soon, regardless of the neighbourhood.
But, some neighbourhoods are more affordable than others, so you might want to snatch up a home in the Hurontario area while you still have a chance.
“Only virtual millionaires, or non-millionaires with millionaire parents, or non-millionaires willing to commit to a lifetime of crippling debt, could afford to break into the housing market,” Kupferman says in the article. “Everyone else had to settle for cramped condos and crumbling fixer-uppers.”
As for other hot GTA neighbourhoods, The Junction Triangle in Toronto topped Toronto Life’s list, with Mimico and West Rouge close behind. Northwest Brampton, Central West Ajax, and Eglinton East sit at the tail end.
You can check out the other neighbourhoods on the list here.
In 1985, when Ronni Fingold launched Forest Hill Real Estate in a tiny 450 square foot space in the heart of Toronto’s Forest Hill Village, she had no idea that her vision of a boutique luxury family run brokerage would quickly become a formidable force in the area’s real estate market and beyond. Today, with 31 offices established across southern Ontario, the idea of family is still one of the key driving forces behind the day to day business and ongoing expansion of the company.
“Forest Hill was born around a kitchen table in my home,” Ronni says. “Surrounded by family and loved ones, we imagined a brokerage that would offer greater sophistication and service while always offering the personal touch
Ronni maintains that real estate is most often about family, and that it’s a sacred trust to help families find the right home while passing their well-loved property on to new owners.
“The business is also a family,” says Ronni. “It’s a place where friends and associates can work in a supportive nurturing atmosphere to achieve prosperity and success.” In addition, Ronni’s children and grandchildren have also built their own careers around Forest Hill Real Estate. They recognize the unique and thriving atmosphere that their grandmother has developed and take pride in contributing to this legacy.
In fact, Ronni’s daughter, Catherine Himelfarb Borden, is the Branch Manager of the Yorkville office. Catherine’s son, Rich Himelfarb is a successful realtor and her daughter, Rebecca, serves as both the corporate Head of Recruitment and the Director of Operations for Forest Hill Real Estate Yorkville.
Early on, Ronni welcomed partners, David and Elie Wagman, who were integral to taking the company to an even greater heights. As experts in the Forest Hill marketplace, they understood real estate and the clientele in the area intuitively. Today, they are still a dynamic force and their son, Jeffrey Wagman is the Broker of Record for the entire company continuing the tradition of engaging the strength and talent of family members in expanding the business further.
Forest Hill’s offices stretch from Oakville to Muskoka and smaller centres including Peterborough and Gilmour to the east. Each office is looking to hire new, qualified agents at the same time as the company is open to establishing new branches. But the expansion has never been driven by growth for growth’s sake.
“Unlike many brokerages, we award new offices according to an attractive well thought-out business plan,” says David Fingold, Ronni’s husband and the company’s president. “Our focus is on attracting people who have demonstrated success in the business and are qualified to run their own shop. We look at sales history, new office location, the knowledge and integrity of the agents associated with the business and the applicant’s trajectory for growth. You don’t purchase a Forest Hill office—you’re asked to join us by demonstrating merit.”
There are a multitude of benefits that come from establishing a Forest Hill Real Estate branch that David reviews with all aspiring Managing Partners.
Ronni Fingold notes that the made-in-Toronto Forest Hill brand has developed solid traction outside the city. “The words ‘Forest Hill’ are associated with quality wherever they’re used,” she says. “Our distinctive brand emblem and signage announce our presence in every market we enter.”
“We’re seeing a lot of new offices established by motivated and qualified brokers,” she says. “But we’re particularly proud when someone decides to switch an existing brokerage to the Forest Hill name. They’re trading their success for the promise of greater success.”
Randy Drohan of the Mississauga suburb of Streetsville exemplifies that transition. His family has planted deep roots in the area. Following a successful real estate career, he launched Drohan Real Estate in 2014—along with the support of his mother’s accounting acumen.
But Drohan didn’t want to relinquish control of the business he’d founded. At the same time, he realized that a successful real estate brokerage needs to do more than simply buy and sell real estate. It also needs to grow its brand.
“In Streetsville, Forest Hill was already a well-known brand, synonymous with luxury and prestige. In our discussions, Forest Hill offered me what I needed to grow the brand without asking me to give up the company.”
Drohan unfurled the Forest Hill banner in January 2018. A dozen employees, including seven agents, made the transition.
“Six months later we’ve doubled the size of the company to 24 employees,” he says. “The Forest Hill name has made it significantly easier for us to attract and hire the type of quality agents we need to achieve sustainable growth..”
Drohan says he is proud to have the Forest Hill name on the sign over his brokerage door. “Our family has now become part of Forest Hill’s family.”
Forest Hill Real Estate is now the fastest growing luxury brand in the country with more than 900 active agents across Ontario and plenty of room to grow within the province. Ronni, her partners, her own family and her business family have developed a unique formula for marketing, promoting and selling real estate in Ontario’s exciting housing market and for this privilege, they are extremely grateful and proud.
This story was created by Content Works, Postmedia’s commercial content division, on behalf of Forest Hill Real Estate
Getting started on your homeownership journey? Familiarize yourself with the “local language,” a.k.a. mortgage speak. This introduction to 10 key mortgage terms and phrases will boost your homebuying IQ and have you ready to meet with a mortgage broker to talk about your options.
The amortization period refers to the number of years it will take to pay off your mortgage through regular payments. Most mortgages, including Genworth Canada-insured mortgages, are amortized over 25 years.
DID YOU KNOW? You can pay off your mortgage sooner (saving interest in the long run) by:
Making payments biweekly instead of monthly;
Making an extra principal or lump sum payment on the anniversary date of your mortgage;
Boosting your payment by 10-20% on the anniversary date;
Making the same payments each month (or better yet: biweekly), even as your principal borrowed amount gets lower.
Fixed rate mortgage
With a fixed rate mortgage, the interest rate on your home loan is set for the term of the mortgage. Fixed rate mortgages offer the peace of mind of consistency: you’ll know exactly how much you’ll owe at the end of each mortgage term.
See also: Variable rate mortgage
Gross debt service (GDS) ratio
GDS refers to the percentage of your household’s gross monthly income that goes toward your housing payments – mortgage (principal + interest), property taxes, heating and, if applicable, 50% of condo fees. Lenders use your GDS and TDS (total debt service) ratios to assess your mortgage application and to determine how much to loan you and what interest rate to apply. Genworth Canada programs require a GDS ratio of no greater than 39%.
See also: Total debt service (TDS) ratio
A high-ratio mortgage is one for which the homebuyer makes a down payment of less than 20% of the cost of the home. All high-ratio mortgages must be covered by mortgage loan insurance (also known as “mortgage insurance”).
Also known as a conventional mortgage, a low-ratio mortgage is one where the homebuyer has made a down payment of 20% or more of the home’s purchase price. No mortgage insurance is required for this type of mortgage.
DID YOU KNOW? You can use your retirement savings to help buy your nest egg. The federal government’s Home Buyers’ Plan lets you borrow money from your RRSP to put toward the down payment for your first home.
See also: High-ratio mortgage
Mortgage loan insurance
Also known as “mortgage default insurance” or just “mortgage insurance,” this financial product is mandatory on all high-ratio mortgages. Your mortgage lender pays the insurance premium and then passes the cost on to you; you can pay it in one lump sum or carry it on your mortgage for monthly payments.
Not to be confused with amortization, mortgage term refers to the time period covered by your mortgage agreement. It can range from one to five years or more. After each term expires, the balance of the mortgage principal (the remaining loan amount) can be repaid in full, or a new mortgage can be renegotiated at current interest rates.
The amount initially borrowed for your home purchase. The balance of this amount will go down as you make regular mortgage payments. (Your mortgage payments go toward a portion of the principal, as well as the loan interest and, for those with high-ratio mortgages, mortgage insurance.)
Total debt service (TDS) ratio
TDS refers to the percentage of your household’s gross monthly income that goes toward housing costs (i.e., mortgage, property taxes, heating, etc.) plus your other debts and financing (i.e., car loans, credit cards, etc.). Banks use this calculation, along with your gross debt service ratio, when assessing your mortgage application. Genworth Canada programs require a TDS of no greater than 44%.
See also: Gross debt service (GDS) ratio
Variable rate mortgage
Also known as a floating rate mortgage or adjustable rate mortgage, this type of mortgage has an interest rate that fluctuates with the prime lending rate. The main benefit of variable rate mortgages is lower interest rates, but in return, mortgagors (homeowners) take on risk: if the prime rate goes up, a larger chunk of your mortgage payment will go toward the interest, not paying down your principal. The result: your mortgage could take longer to pay off and cost you more in interest.
See also: Fixed rate mortgage
Read on! You can enhance your Mortgage 101 education with these Homeownership.ca feature stories:
There’s only a handful of cities in the world that make living in New York seem cheap for middle-income people, places like London, Sydney and Hong Kong. And then there’s Toronto, as 26-year-old JunJun Wu will tell you with a sigh.
After almost three years in New York she opted to move to Toronto for what she figured would be less-expensive housing.
“The apartments that I saw were so tiny, which was shocking,” she said. “Compared to my studio in New York, these were half the size.”
Prices have soared almost 60 percent in the last five years in Canada’s biggest city, and are up another 3 percent already this year. They’re not as high as Vancouver — one of the hottest real-estate markets anywhere — but among the world’s major cities, Toronto housing ranks as the fifth most unaffordable relative to income, according to consultant Demographia.
All that means is that a Canadian millennial, aged 25 to 31 with a median income of C$38,148 ($29,360), can’t buy very much housing in Toronto. Her maximum budget at that salary would be about C$193,661, according to Royal LePage. That calculation includes tougher lending rules, institutedthis year, that has reduced buyers’ purchasing power by almost 20 percent and cooled the market.
That’s probably not even enough money to purchase the garage of a detached home in the Toronto region, where the average price was C$1.05 million in May, according to the Toronto Real Estate Board.
Rents are no better, having soared about 11 percent to an average monthly C$2,206 ($1,697) in the first quarter from a year earlier, according to researcher Urbanation. That’s if you can find a unit: the number of newly completed condos available dropped to 1,945 over that time frame, the lowest in more than eight years.
Angie Mosquera, a 23-year-old software developer, saw up to 30 different units in recent months but kept getting outbid.
“I was so frustrated by the whole process,” Mosquera said. “I was like screw this, I’m going to be 40 and living at home, and I don’t even want to live in Toronto anymore.”
She eventually found a tiny studio downtown for about C$1,620 per month, meeting her budget. Still, the rent eats up a huge chunk of her salary, which is especially frustrating because she moved to Toronto from Montreal for a 40 percent bump up in pay.
Even those with more resources find it tough. Three years ago, Justin Wood and his wife Stephanie bought a three-bedroom penthouse condo for about C$430,000. Its price surged by about C$181,000 and this year they decided to upgrade to a house, with a toddler in tow.
“We thought we were going to be rich and it was going to be amazing,” said Wood, 33, who is now chief executive officer of his own Toronto-based tech startup. “But then we were like ‘Oh wait, we have to buy something.’”
As living in Toronto proved to be too expensive, the Woods headed for the suburbs and ended up purchasing a three-bedroom detached house in neighboring Oakville with a pool for about C$800,000. Monthly mortgage payments are about C$3,400. The commute is around two hours.
After spending almost a month in Toronto looking at about 40 listings, JunJun Wu, a college-prep counselor originally from Montreal, finally found a studio to rent in downtown Toronto through an online listing. She’s relieved that she secured a lease but the experience has left her unnerved.
“Maybe I should’ve gone back to Montreal instead,” she said. “I’m thinking I’ll give myself maybe one or two years in this city to see.”
As co-ownership becomes a popular antidote to unaffordability, expect to hear about ensuing acrimony.
“On paper, it seems like a great idea, but in reality…”
Steve Arruda, a Century 21 Regal Realty sales rep, agrees that unaffordability in cities like Toronto and Vancouver is catalyzing creating living arrangements, but he can see myriad problems arising from ones like co-ownership.
“Everybody has the best of plans, and on paper it looks perfect, but when they move in with each other, who’s responsible for what? What if one person wants to sell early because they got a job on the other side of the country or far outside of the city?”
While co-ownership between friends can be tricky, it becomes amplified when more than one family owns and shares a home.
“I’ve had ones where two friends bought a place together and thought it’d be a great idea and good for their families, but they didn’t buy a mansion,” said Arruda. “It was a crammed space for two families and four children. With the respective families or events they host, there will be issues that way. They have the best intentions, but when you’re living in a crammed space, function becomes a different story.
“It could be happy when two friends share but when you start bringing in partners—more personalities under one roof could cause a problem.”
Arruda concedes, however, that the arrangement has better likelihood of succeeding if a duplex is the shared abode. Not to say it won’t have its share of problems.
“I find the best option for that is if the home is divided equally into a duplex, each with its own kitchen and bathroom, and maybe they have a shared living space,” he said. “But if one person wants to sell, the other has to sell or buy that person out.”
Manu Singh, a broker with Right At Home Realty, doesn’t recommend co-ownership but nevertheless suggests both parties draw up an exit strategy.
“They should have an agreement in place, an exit strategy,” he said. “Just a simple contract, not a complicated one, that lays out what the exit strategy is should one party decide to move on. If it’s for investment purposes, maybe the appreciation rate reaches such and such level and only then can the partner decide to sell.”
Singh also recommends a minimum hold period of five years “to recoup a lot of costs of the transaction, like the Land Transfer Tax.”
Source: Canadian Real Estate Wealth – Neil Sharma25 May 2018
Hundreds of homeowners whose real estate transactions collapsed in the aftermath of Toronto’s market plunge last spring lost an average of $140,000 in property value when they eventually managed to sell their houses, according to a new report.
The study is the first to measure the loss of market value associated with so-called closing defaults, an unwelcome reality of real estate that lawyers say surged in the last half of 2017.
The report also identifies high demand from real estate investors as a key factor that fuelled the region’s white-hot market in early 2017. Investors bought 16.5 per cent of all low-rise houses in the Greater Toronto Area in the first quarter last year, a 65-per-cent increase compared to 12 months earlier.
At least 866 sales deals for low-rise houses failed to close in the GTA last year, according to the study released on Thursday by John Pasalis, a Toronto broker who analyzes industry statistics. The actual number of closing defaults is likely much higher as many other homeowners in similar situations still have not found new buyers.
On average, Mr. Pasalis found that homeowners lost $140,200 in property value over the 4.5 months it took them to find another buyer later in 2017, or in the first quarter of 2018, for a combined total loss of $121-million in market value.
“It tells you how rapid the decline was,” Mr. Pasalis said. “It tells you how quickly the markets turn.”
For Vicki Clayton, the cost of her failed deal was even higher. After a buyer agreed to pay $1.9-million for her North York tear-down bungalow in late April, 2017, the transaction fell through as the market plunged and the two parties couldn’t agree on a lower price. She relisted her house and it recently sold for $1.27-million, a loss of $630,000.
“It’s really a sad state of affairs but that’s what’s happened,” said Ms. Clayton, who is 66 and recently retired from her job as an office manager.
Ms. Clayton, who said her health suffered from the stress associated with the failed deal, has launched a lawsuit for damages for lost market value, as well as for the defaulting buyer’s deposit.
The GTA’s real estate market whipsawed from huge gains to rapid declines last year. Home prices were up by 34 per cent in March, 2017, compared with one year earlier, but plunged after the provincial government announced a 15-per-cent foreign-buyers tax in late April, falling 18 per cent in just four months.
The sudden shift caught many by surprise and lawyers reported an uptick in calls from buyers and sellers whose deals were in danger of collapsing. “In some cases, it was beneficial for the seller to just reduce the price, bite the bullet, get the deal closed without litigation,” said Mark Weisleder, a real estate lawyer.
Others have headed to court as angry sellers try to recoup defaulting buyers’ deposits, which are usually held in trust until both sides come to an agreement or a judge issues an order, as well as damages for the difference between their homes’ initial selling prices and what they eventually settled for.
In some cases, lawyers said their clients are involved in litigation related to two properties, as both sellers and buyers, as the domino effect of a buyer not closing on a seller’s deal caused that person to then default on their own purchase of a new property.
“It can be a chain reaction,” said Wendy Greenspoon-Soer, a lawyer who specializes in property-related litigation and currently has about 10 closing default cases already in litigation or heading that way.
For his study, Mr. Pasalis isolated low-rise homes that were sold on the Multiple Listing Service in the GTA in 2017 and then checked to see if they were later resold by the same owner before the end of March, 2018, indicating the first sale collapsed.
Mr. Pasalis and his team found 1,784 properties that sold last year and were later relisted for sale but did not sell, although they did not determine whether the seller for both listings was the same.
He also identified 122 low-rise properties that closed successfully last year, but were later sold again by their new owners for an average loss of $107,325.
“I don’t know if it’s panic selling or just that they’re overstretched financially, they think things are going to get worse,” he said.
Real estate appraisals are an integral part of the purchase and sale of property, particularly if the buyer is seeking funding from a lender. The appraisal value of a home can make or break a sale, so it only makes sense that so much weight is put upon it.
Whether you are buying or selling, you have minimal control over the appraisal – but that doesn’t mean you need to be in the dark about what it involves and how it is determined.
There are numerous myths about real estate appraisals that people usually discover the hard way. As a buyer or seller, it is essential to have at least a general understanding of how appraisals work.
Below I am going to summarize what you should know about real estate appraisals. Use this as your guide to understand the appraisal process.
1. Is there a difference between an appraisal and a home inspection?
Definitely. The vast majority of real estate transactions involve both an appraisal and an inspection, but they are very different things. An appraisal focuses on determining the market value of the home. The value is based on a lot of various factors, including the cost of similar homes in the area.
A home inspection is supposed to identify problems with the home. While an appraisal may look for obvious flaws, a home inspection goes much, much deeper. With certain kinds of loans, however, they can become intertwined.
For example, with an FHA loan, there are certain condition requirements a home has to meet to be approved for an FHA mortgage. It behooves sellers to understand how to make their home FHA mortgage compliant. Why? A significant percentage of home buyers will use FHA financing to purchase a home.
When a borrower is using FHA financing the appraiser will look the home over to make sure it meets the FHA’s minimum standards for the condition.
2. So what does the appraisal process involve?
Like a home inspector, an appraiser will go throughout the home to inspect its state of repair, its features, its square footage, etc. Mostly, the appraiser looks for all the factors that determine the general market value of a property. People often ask what does an appraiser do. You can find out in this comprehensive resource.
The appraiser will go through every room, taking note of all the details, big and small, that are required to accurately compare the home to other homes to measure its value. When all the details of the house are collected, the appraiser can look over the recent sales of similar homes – searching for properties as identical to yours as possible – and make a comparison to deliver the final appraisal price.
3. Are there different types of appraisals?
The most common kind of appraisal is when an appraiser visits a property and inspects both the inside and outside of the property. An exterior-only inspection is also possible which is known in the industry as a “drive-by appraisal.” A drive-by appraisal is certainly not as comprehensive and is often used when the lender doesn’t have much doubt as to the value of a home supporting the mortgage amount being requested.
Appraisals are always a good idea for property transactions, and they are required for any home sale that needs a mortgage. Appraisers use their experience and training to give an accurate view of the value of a home.
Since buyers want to spend only what is necessary, and sellers want to generate as much income from a sale as possible, it just makes sense to decide the value of the home before money changes hands.
Lenders also demand appraisals before giving out loans to protect themselves. If for some reason the buyer defaults on the loan, the lender wants to know that they can sell the property and get back their money. Lenders never want to see a low appraisal on a home purchase for which they are lending money.
6. Who is the appraiser and how are they hired?
The lender giving the mortgage hires the appraiser through a third party company. Appraisers and lenders are no longer allow to be in direct communication.
Appraisers become licensed after completing licensing coursework and internship hours.
The appraiser has to be an objective third party who has no financial or other connection to any person involved in the transaction.
The property being appraised is called the subject property.
7. Is the appraisal information available to anyone?
No. The appraisal is owned by the party that orders it – which is not necessarily the party who pays for the appraisal. It’s possible, although rare, the owner of the home will pay for the appraisal to move the sale forward, and find themselves frustrated that they can’t get access to the appraisal information.
If the lender orders the appraisal, no matter who pays for it, then the lender is the party in control of who has access to that information. In such a situation it is up to the lender to inform the buyer or the seller what the home appraised for.
More often than not, however, the buyer is paying for the appraisal as part of the process for getting a mortgage. The mortgage holder is required to give the buyer a copy of the appraisal report by law.
8. Is the appraisal the final word on the value of the home?
If you do not like the value determined by the appraiser, you do have recourse. Your real estate can talk with the appraiser and ask questions about why decisions were made that you disagree with. It is possible the appraiser missed something.
Everyone makes mistakes, even experienced professionals. It is also possible that your perspective on the value or your home differs from the appraiser.
While you may think that certain aspects of your home are of a certain value, the appraiser may not see it that way. If you are unhappy with the appraisal, you can request another one. Now and then a low appraisal will be fought. Just be sure you have good cause because the most likely outcome is that the new appraiser will produce a similar opinion as the last one.
In such circumstances be prepared to present a valid argument as to why you believe the appraisal is wrong. If you hired an exceptional real estate agent, they should be ready to help you with this.
9. Why is your neighbor’s house valued higher than yours?
Many times homeowners are frustrated to discover that their homes are not as valuable as similar homes in their area. They may feel that their homes are more beautiful than the neighbors, they may have made additions that they felt should have added more value, etc.
If you find yourself in such a situation, try to be patient and consider the possible reasons why the homes were appraised differently.
Your neighbor may have more square footage than you realize, bigger bathrooms, nicer finishes or any number of things that can make a home more valuable. It’s possible the neighbors made improvements that added value to their home while yours did not.
If you think the appraiser made a mistake, you can always ask him or her why the discrepancy exists.
10. How often do you need to get an appraisal?
In most situations, an appraisal is considered valid for six months. However, in specific markets, where home prices are changing rapidly, some lenders may only use an appraisal for three months or so. And remember, the appraiser will only consider finished improvements to the home. You cannot ask them to determine value based on good faith.
Essentially, the value the appraiser comes up with is valid for the day they completed their report. Real Estate values are continually changing. Sometimes an appraisal will need to be re-certified if it becomes out of date.
Also if you are selling a home and have gotten an appraisal don’t think the buyer’s lender will use it. They will not! The lender holding the mortgage will order their own independent appraisal. Quite often sellers will waste their money on an appraisal thinking it justifies their asking price. Sorry, but it doesn’t work that way.
11. Can I use my city’s property assessment in place of an appraisal?
A property assessment covers a wide area and serves a different purpose than an appraisal. An appraisal is precise, designed to give the most accurate value of a home at the time of the appraisal. An assessment is intended to get a general idea of what property taxes should be.
Property assessors use their figures as a measuring stick for municipalities to collect a certain amount of money to cover expenditures to run a city or town. The assessed value and market value are two very different things. The appraised value is something different from the assessed value as well.
12. Is a Zestimate from Zillow the same as an appraisal?
NO! NO! NO! This cannot be emphasized enough a Zillow estimate is nothing like an appraisal and cannot be used as a substitute. In fact, using a Zillow home value is one of the worst ways to put a value on a property. Whether you are buying or selling a home, a Zillow Zestimate should be ignored. It is a worthless piece of information! There are times when the Zillow value is off by over $100,000 to the actual value.
Don’t be a DUMMY – using a Zillow value is like a bad car crash waiting to happen!
Source: MaxRealEstateExposure.com – By Bill Gassett