This photo (image below) came up again recently. How you see your house is different from everyone else. I have seen it many years ago. Let’s write one article so that I know where I could find a copy when I need to explain why you may think ever so highly of your home but others do not. Also, why sometimes you want to tell the council that your house is actually worth lower and deserves a lower tax?
To us, our home is a perfect one.
You can see in the image that we often think of our home as a perfect home. At least at the point when we purchased it. Thus the image shows a very nice home. It has most of everything we like to have in a house.
To the buyer, it’s not worth the price
To the buyer, he does not believe our home is worth that much based on the price we want to sell. We can keep telling him all the memories we have but he will not feel anything. Anyway, he needs to act that way because it’s price negotiation stage…
To the bank, the value is lower
The bank would want to protect its profitability. Thus, it will value the property lower so that it could lend you lesser money. If there’s a need to sell that home later on when we fail to pay, the banks could then sell it at a higher price…
To the insurance evaluator
Everything seems to be wrong with the home. Haha. If nothing is wrong with the house, how could they charge you a high premium… If everything looks perfect, then there are no risks, when there are no risks, what happens to the premium?
To the municipal council
The municipal council would want to get as much as possible from the house owner through rates assessment and taxes. According to them, this is necessary for them to provide a better service to everyone. Keeping roads without holes, making sure cleanliness and more.
This is why how you see your house will be very different from everyone else. Just need to note that one day, we may just become a buyer and we would also do our very best to negotiate a lower price than what the seller wanted. Under current situation (COVID-19 pandemic and CMCO), I think buyers have advantage when it comes to negotiation. As for the banks, they are also super conservative currently because if they decided to lend us too much, then they will be faced with a higher risk in the future if the buyer defaults. Let’s just hope the councils will do their best if they were to charge us higher assessment rates yeah.
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