Understanding Your Home's Value

Home value.jpg

The Value of your homeā€¦.

is a measure that determines how much your home is worth in comparison with our homes on the market. For Example if you purchased your home 10 years ago, and at the time your purchased your home was worth $200,000 and 10 years later someone sold their home in your area similar to your for $330,000 chances are your home's value may be close to $300,000 so your homes value went up about $100,000 .

So the reason the value of a home matters alot especially to people who are looking into investing or refinancing, you want to make sure that you will actually get a Return on an investment if the future value of the property is higher then the starting value. Now in some areas you may see the opposite. In some cases if the value of the home drops and your Loan to Value is high it may limit the amount of cash you can get from your home and it can even cause your home to be underwater ( more than it is actually worth)

I always encourage people who own their homes, to keep an eye on the current value of their home or if there are recent homes that have sold in their area to watch what they are being sold for because that can have an affect on the value of your home. If one of your neighbors had a foreclosure or they lost their home to the bank, chances are the value on that property dropped significantly so that can affect you as well.

As for First Time Home Buyers, the best way to determine what your new home will be worth is to take in your surroundings. For example, what does the school district look like, are their shops or restaurants coming up in your neighborhood, are there houses that need serious landscaping work.

If you are entering real estate or if you are seasoned vet in the industry you know how important the value of a home is. I encourage you to checkout Zillow, Realtor.com or even speak with a Certified Appraiser to see what your home is really worth