Finding a buyer, negotiating, and handling the paperwork are the most well-known tasks when selling a house. But did you know that a common mistake can attract the attention of the tax authorities and trigger a tax audit? This mistake is undervaluing the property. That's why it's essential to accurately estimate the market value of your home.<\/p>\n
Why the temptation to undervalue your house?<\/strong><\/p>\n Some owners deliberately set a low asking price to expedite the transaction, attract bargain hunters, or reduce transfer taxes (taxes paid by the buyer). Others hope to lower their capital gains tax, especially if the property is not their primary residence. However, this strategy carries significant risks.<\/p>\n The tax authorities monitor price discrepancies<\/strong><\/p>\n The tax authorities systematically analyze real estate transactions. If the declared price seems abnormally low compared to the market, they can initiate a reassessment of the property. To do this, they rely on:<\/p>\n