Why You Need to Know the Market Value of Your Home

A lot of home owners have no idea of the present market value of their homes. You could be one of them. Some also might have had this knowledge at some point, while others have never had an appraisal of their home. Knowing the value of your home isn’t a “once and for all” affair that is needed only when you’re buying or selling your property. Whether you’re selling your home or staying, it’s crucial you know its current value. Knowing the market worth of your home, among other benefits, enables you make informed decisions that pertain to it. If you’re still in doubt of the need for you to know the market value of your home, here are some reasons for your enlightenment:

  1. 1. Buying
Buying a house doesn’t end with you sighting a property that catches your fancy and sealing the deal with the owner. It involves a close consideration of other critical issues. More often than not, home buyers are required to seek financial assistance from some financial institutions that pay for the home while they repay the money on pre-arranged agreements. When you’re buying a house, it’s crucial that you have an appraisal done on the property. You could play safe by involving a professional appraiser or a real estate evaluator to handle the appraisal for you. You would need this as part of the criteria for you to get a loan or any other financial assistance you might need.

  1. 2. Payment of tax
Not knowing the current market value of your home could put you at a disadvantage when it comes to paying tax. Leaving the appraisal of your home to the government in relation to tax payment could have grave consequences on your finances. When it comes to payment of tax over your property, it’s apt for you to know its actual market value. Working with a stale assessment or assumption of the value of your home could attract some avoidable financial consequences. Underpaying as a result of a wrong estimate of the market value of your home could attract a penalty, while you get to pay more tax than you should when you overrate your home.

  1. 3. For legal and estate purposes
Homes have a funny way of being dragged into legal tussles especially with issues bothering on relationships gone awry. In cases where a marriage ends in divorce, sharing of assets often includes sharing the homes or estates as the case may be. For just this reason, knowing the current market value of your home is worthwhile. This would allow you to be carried along in decisions about the sharing of the home and also prevent you from being cheated. Also, in cases of estate transfer due to the death of the owner or a takeover by a financial institution, knowing the market value of your home is beneficial. Knowing the market worth of your home in a case of takeover by financial institution because you used it as collateral is extremely important. This would help you check if your home is commensurate with the debt owned. This way, you save yourself from overpaying.

  1. 4. Home loans (equity loans)
Knowing the current market value of your home comes handy when you’re trying to get an equity loan. When you’re planning to do a total or partial renovation of your home and want a loan for it, it’s important to get your home appraised. The financial institution providing the loan would also need to assess your equity in the home. The current value of your home would be evaluated vis-à-vis the renovation to be carried out. Knowing the current market value of your home would convince them that the renovation would be worthwhile and that the value of your home after it would be higher than its current worth.

  1. 5. For insurance purposes
Insurance is another good reason why you should know the market worth of your home. You should be careful though not to make the mistake of using the purchase price or current market value of your home for insurance. This would lead to higher premiums for you. Rather you should use the rebuilding cost. Find out how much it would cost you to rebuild the house in case of a mishap like fire outbreak. This is also the best time to conduct the security system reviews of your home.

There are so many reasons why you need to know the market value of your home. I recently learn more about this fromMichael Merrit, a real estate agent with focus on helping people sell house fast in fresno. I hope some of the reasons highlighted above will help you take action on knowing the value of you home now.

Author:. Adeyemi Adetilewa is a digital marketing strategist who writes for publications. He's the Founder and Editor of Ideasplusbusiness.com, an online community for entrepreneurs to share business ideas. His one word is #possibilities.
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