A house isn’t just a roof over your head—it’s an investment, the value of which increases over time. However, do you actually know how much your home is worth at this moment?
If you don’t, a good Realtor in New Orleans, LA will advise you to know all you can about your home’s market value. Here are six reasons why:
Know the right time to sell
The real estate market goes through cycles, which means home prices hit peaks and valleys over the years. By closely monitoring your home’s value, you can easily determine if it’s wiser to sell your home or stay put for the time being. Because as the old saying goes, you have to strike while the iron’s hot.
Have an accurate listing price
When the time does come to sell your beloved home, you will want to get the best price for it. However, you won’t know how much to list it for unless you know what your home is worth, to begin with. Knowing your current home value also gives you an idea of how much your investment has grown since you bought it—and how much you stand to profit if you sell.
Get better refinancing terms
Equity is how much of your home you own outright. If you bought it for $400,000 and managed to pay down $200,000 of your mortgage, your equity is at 50%. The bigger your equity, the higher your chances of getting approved for refinancing, and the higher the amount you can borrow against that equity. Find out how much your home is worth so you willknow exactly how much your equity is.
Contextualize value of home improvements
A lot of renovations—such as updating kitchen appliances—are quality of life improvements. But many home improvements are also done to raise a property’s asking price. When you know your home’s current market value, you can be more strategic about the home improvements you undertake, focusing only on those that offer the best return on investment.
Cancel your private mortgage insurance
Couldn’t make a 20% down payment on your home when you first bought it? Here’s another reason to check up on your home’s value: once you’ve built up at least 20% equity in it, you can ask to have your private mortgage insurance (PMI) cancelled! With PMIs costing up to 1% of a property’s total contract price, you can save up to $4,000 a year on a $400,000 home.
Have adequate insurance coverage
A home insurance policy assures you that, should your home ever be destroyed, you will get a financial package that you can use to rebuild it. But as your home’s value grows over the years, you should also update your insurance policy to give it adequate coverage. Otherwise, the insurance money you get may be well short of your property’s true value when calamity strikes.
Want to have an idea ofhow much your home is currently worth? Then try out our free home worth estimator.
For more advice on buying and selling a home, get in touch with our team, the Axis Realty Group. Just call 504.218.5958 or send an email to Nicole(dotted)AxisRealty(at)Gmail(dotted)com. Click here to know more about our team.