Let's look at how the seller might
determine the asking price.
1) The house down the block may have
sold for 200K, but when was that, and was the house similar.
Perhaps the house sold for that price last year, but now the
market is in a downturn, and that house is only worth 160K.
Your house would not be worth 200K.
2) Was the house that sold down the
block similar to yours. Perhaps they had more square
footage, a pool in the back and it was 10 years newer. Yours
would not sell for the same price.
3) Maybe the seller wasn't comparing
his house to any other house, and he just needed 200K to pay off
4) Maybe his aunt "used" to be in the
real estate business and she had a feeling that it should be worth
5) And perhaps the 200K price was just
an "asking price" and the seller knows that the house is only
worth 170K, but he might as well start off higher to factor in the
Now let's discuss the only way of
accurately determining the value of the property you wish to buy.
And that's by getting an appraisal done by a certified appraiser.
Then you will know exactly what the house is worth, and whether
you wish to pay more to get it.
It is also advisable to get a home
inspection. This is different from an appraisal. An
inspector looks at such things as the foundation (to ensure it
isn't cracked) and the structure (ie free from wood rot, etc).
So if you have poor credit, and wish a Canadian loan for any
purpose, please complete the application form above. Thanks.