Homeowners should always have an accurate knowledge of how much their home is worth – even when they aren’t selling! There are a variety of reasons why it’s important to know your home’s value. Fortunately, Bōde has made it simple to keep up to date with current market trends and home values. Our Market Data, Sold Data, and Comparables tools all work together to give homeowners a well rounded view of what is happening in their area with homes similar to theirs. Now, homeowners can access all the data the need – completely free. This information is essential for determining the value of their homes.
Here are 6 reasons why it is important to always know the value of your home:
Buying a property
Knowing the value of your home can help you to know how much home you can afford. Whether buying a new home, or a second investment property, it’s necessary to understand how much equity you currently have. It’s also important to have an idea of the value of the home you are looking to purchase. If the list price is significantly higher than the appraised value, you may not receive approval on a loan that covers the full amount of the purchase price. Staying up to date with the market in both your own community and any you are interested in buying in will assist you in making informed decisions.
Selling a property
Whether you are thinking of selling now or not for many years down the road, it’s important as a homeowner to always know home much your home is worth. Sometimes the need to sell can come up expectantly, or it may just suddenly seem like the opportune time! Whatever the case may be, always knowing what you stand to gain or lose financially with your home is crucial as a homeowner.
Bōde empowers home sellers to set their list price – themselves! When you already have a solid knowledge of what your home is worth it becomes easy and straightforward to decide on a list price. Our sellers know their homes better than anyone else which is part of the reason why we see them sell for more and be more likely to sell than the market on average. Market data helps homeowners stay up to date with the value of homes in their area, and determine their own home value.
Insurance coverage
As home values fluctuate with market conditions, it is crucial to know your home’s value to make sure that you have adequate insurance coverage. In extreme situations, such as a fire, the insurance coverage for rebuild costs of your home will need to be sufficient for a comparable home at that time.
Property assessment & tax
Each year, homeowners receive a value assessment and subsequent property tax payment from the municipal government. If homeowners know their home value, they will quickly see if they have been under or over valued on this assessment. If you have been over valued and are not planning to sell any time soon, it could be in your best interest to appeal the assessment so that you can lower your property tax payment amount. The same may be true if you have been undervalued and are thinking of selling soon.
Sold data with Bōde provides an overview of what has sold recently in each community and can be filtered by date range to see price trends in your area.
Renovations
When doing renovations it’s important to know the ROI (Return On Investment) of the upgrades you are making. Understanding how additions to your home impact it’s value will help you better plan for large renovations. Comparing your property to other homes with very similar location, style, and size – but slightly different conditions or amenities – is a great way to gauge how much value an upgrade is adding to your home. While condition and amenities do not impact value as much as the location, style, and size, they can make your home more appealing to buyers.
Bōde has created a patent-pending tool to make this simple for homeowners. By answering a few quick questions you’ll be able to see currently listed homes that are the most comparable to yours. Give it a try!
Financial, retirement & estate planning
As part of your overall savings and wealth planning, knowing your home value is essential for understanding your net worth and making financial decisions. During retirement, many homeowners look to downsize. How much you can sell your current home for, and buy a smaller one, will impact your overall financial picture. You might wait for the market to be in conditions where you can sell high and buy low – which means having a solid understanding of what your home is worth. When planning your estate you will also need to have an idea of your home value to understand how your assets will be distributed. Ultimately, for any decisions relating to your finances having an accurate knowledge of your home value is highly important.
