Are you considering putting off those repairs because it doesn’t “look” like too much damage was done? Be careful as there is a good chance the damage could drastically impact the value of your home.
If you plan on refinancing your home in the future you will require an appraisal. When that appraiser visits your home and sees that there is water damage in your basement, they are obligated to report this to the lender and now your home which you thought was valued at $450,000 has been valued at $400,000 taking into account the water damage.
If you were relying on that additional $50,000 to pay off debt, purchase an investment property or conduct some renovations you will find yourself “knee deep” in water again.
Looking to get full pop for on the sale of your house…don’t count on it!
First off, you have to disclose the fact that there was water damage to your property and your sale price will ultimately have to reflect that or you have to repair the damage.
Thinking a coat of paint will fix the problem? Think again!
Imagine this…all the homes in your neighbourhood recently sold for an average of $450,000. You decide to list your home for the same amount and use the proceeds to purchase another property. Your realtor has found a buyer willing to pay slightly more than that amount upon condition of inspection. A home inspection reveals the water damage in the basement and the buyer is informed that it will cost them a minimum of $40,000 to fix it assuming that there are no mold issues or other problems hidden behind your basement walls. The buyer comes back with a 2nd offer but this time it is for $375,000 – or even worse they say no to the deal. Remember, at this point your realtor is obligated to note the water damage and the repair that would have initially cost you $20,000 will easily be double that amount.
To understand more on how to protect the value of your property from any water damage that may have occurred as result of this week’s storms speak to a trusted mortgage advisor. They can help you access the funds needed to fix your problems today so that you can keep more money in your pocket in the future.
Don’t let yesterday’s flood dampen the value of your home!
Each episode of ‘Hot Property’ stars one of Canada’s top mortgage brokers from Canada’s Premier Mortgage Brokerage – MonsterMortgage.ca.
If you would like to watch previous Hot Property episodes, you can catch previous Hot Property episodes on the CP24 site here. If you have any questions regarding Cash Back mortgages or any other Canadian mortgages, call MonsterMortgage.ca or fill out a contact request hereBACK TO BLOG FEED