There are plenty of reasons why you should have an understanding of your current home value even if you are not considering a move. First and foremost, the rising values of property will affect your insurance coverage. If you aren’t sure of the current replacement value of your home, chances are you are underinsured. This could be catastrophic in the event of full replacement of your home. Many of my Realtor friends in Northern California tell me that since last year’s fires, hundreds of the homes will never be rebuilt because people were underinsured as prices have quickly escalated there. In Kansas City, values have increased almost 12% in the past 2 years and much higher in certain areas around town. Does your home owner’s insurance adequately reflect the current value of your home?
Second, no one wants to pay any more taxes than they have to but understanding the current value of your home can help you protest or agree with your current real estate taxes. How does that work for or against you? If there is any chance you will be selling your home in the next couple of years, you will want the county to properly assess your value because potential buyers will take issue with any disparity (on the low side). If you feel your taxes are being over assessed, we can help you protest by providing comparable sales for you to present to the county. Do your real estate taxes accurately reflect the value of your home?
Third, the issue of financial planning must be considered as well. If you care about an asset sheet for financial planning purposes this could also have an impact on your will and estate. Are your assets accurately reflecting the value of your home?
Next, if you are considering a major remodeling project, you must understand the value of your home and how it is positioned in your neighborhood especially if you are considering borrowing the money to do so. We can help you put parameters around your project and even suggest the level of finish you should consider. Do you know the new value of your home and finance options for your renovated project?
Lastly, if you are considering selling your home pricing it to the current market value is critical in any market. Most new agents make the common mistake of pricing a home incorrectly. The surrounding home sales will give you one indication but an experienced professional can value the nuances of your home, neighborhood and current demand. Call us today for your personal valuation or if you aren’t currently receiving a Market Snap Shot from us, click on the link below to receive the current sales activity in your neighborhood.