Most people don’t consider their home’s value until they begin thinking about selling. In actuality it always pays to know!
For example, having an accurate value helps you make smarter home improvement decisions. With an accurate home value in mind, you might approach improvement projects differently in order to save time and money.
That’s just one benefit of understanding the always changing value of your home. We’ve compiled a list of 5 ways extra attention now will save you time and money later!
Knowing your home’s value can guide you to the right refinance opportunity. If you are in need of a lower interest rate or a lower payment, the correct value of your home will help determine how much you can borrow. If you need guidance or a referral to a great lender, reach out to us and we can help.
Understanding your property taxes
Have you seen a change in your property taxes? Are you wondering if that amount is accurate? Your property taxes are based off the assessed value of your home in the current market situation. If the market is healthy and you’ve made renovations, chances are your property taxes will go up. Most people pay their property taxes without question– but checking to make sure you’re not being overcharged could save you significant money.
Home Improvement ROI
Knowing the value of your home in the in the current market will help determine if home improvement will pay off in the future. If your home is already valued higher than the other houses in your area, you may not receive the return in investment you’re expecting. Adjusting the scope or cost of the project would then be beneficial.
Getting a Line of Credit
If you’re interested in getting a Home Equity Line of Credit, you must know your home’s value. Generally you must have 20-25% equity in your home to quality for a HELOC. A home value rising in a good market (like our market here in Seattle!) creates good opportunities for sellers!
Getting the Right Insurance
Home owner’s insurance is based off the appraised value of your home. This affects you when you renovate your home. For example, if you buy a home with an unfinished room and you decide to finish it, naturally your home’s value will go up. When the value goes up you could then be under-insured. You’ll want to update your insurance so that it reflects your new value and your new room.
As you know, the value of your home is affected by many variables. If you want a current and accurate estimate give me a call – even if you’re not thinking about selling soon! We are always happy to help.