Do you know how much your home is worth? There are many reasons why this information is important. Whether you are a new homeowner or have lived in your home for years, you should know the value of your home. Here are a few reasons why.
Selling Your Home
The first reason is pretty obvious. If you are selling your home you need an accurate assessment of its value. Your home is most likely your biggest asset so you don’t want to get less than it’s worth. At the same time, you want to make sure your home isn’t overpriced so that it is a competitive listing in your market. When selling your home this is the line you have to walk. You want to get as much for your house as possible while ensuring your home will actually sell.
If you are trying to decide whether to sell your home or not, knowing its value can help you make this decision. For instance, if you are wanting to make a certain amount of profit on the sale of your home and you find out it’s not worth that much, you can hold off on the sale while you make upgrades that will get the asking price to the number you want.
Property Tax
Another reason you should know the value of your home is to make sure your property tax bill is correct. Property tax is based on the tax assessed value of your home. Knowing the value of your home allows you to make sure you are paying an appropriate amount in property taxes. If your property tax bill seems unusually high based on the value of your home, it’s time to make some calls and make sure you aren’t overpaying. It could be a simple error and you would never catch it if you didn’t know your home’s value.
Home Equity
Home equity is the market value of your home minus what you still owe on it. For example, if your home is worth $250,000 and you still owe $150,000 on your mortgage, your total equity is $100,000. Home equity can be used to acquire loans or open lines of credit. The collateral is the equity you’ve paid in your home. You can use these types of loans to make large purchases like college tuition, consolidating the rest of your debt, or remodeling your home.
Remodeling Your Home
Another reason you need to know your home’s value is to decide whether you should tackle that remodeling project you’ve been thinking about. It’s important to know whether an upgrade will up your asking price in case you decide to sell. A good rule to follow is to make sure that any remodels you do line up with the surrounding homes in your neighborhood. For instance, if you live in a neighborhood of 80s split-level homes, you wouldn’t want to add a glass elevator to your house because if you decide to sell you would not get that money back. A safer bet would be to redo the floors, paint the interior, or remodel the kitchen.
How Do I Find My Home’s Value?
These are just a few of the reasons why knowing your home’s value is important. Now that you realize you need to know the value of your home, how can you actually find that information? I’m here to help. On my homepage, there is a button that says “Get Your Home Value”. Click that button and let me help you find out what your home is actually worth. Then you will be equipped with the information needed to make the best decisions possible regarding your home.
