House Worth is a fundamental question and one that is important to answer as it can affect any number of issues, from insurance cover to borrowing power and equity to the asking price you set if you want to sell. This is one figure that you definitely want to access and understand. How do you do it?
Why Is It Important to Know How Much Your House Worth?
Your home’s value is an important detail to have in your possession. It especially comes into play when:
You Want to Sell Your House
Do not proceed towards a sale if you don’t know what your house is worth! You certainly need to have this information at hand so you do not overestimate its worth on the market (common) OR underestimate its value (also very common). You need to know what your house is worth so you can set a realistic asking price and set yourself up to meet your next steps successfully.
You Would Like to Refinance
Generally, you can refinance your mortgage at any time. However, it likely behooves you to wait if your loan terms have a fixed or discount rate term. Before then, you may have to deal with an early repayment charge. Instead, waiting until this term has expired can allow you to refinance and receive better terms going forward. Knowing the value of your home as well as how much equity you have in it is essential in ensuring you get the best deal possible.
You Want to Make Improvements
You may need to make the house more comfortable and efficient or you may need to prepare it for sale and get an optimal asking price. In determining whether certain improvements are worth it and will deliver a good return on investment (ROI), it is important to understand the value of your home. It may not be worth it to spend £50,000 pounds on a kitchen upgrade, for example, when it will only raise your home’s value by a fraction of that when it comes to selling.
You Need to Access a Line of Credit
You can borrow against your house to access funding for other goals. The amount you can obtain depends largely on the value of your property, as well as the equity you have in it, your credit history, and your loan-to-value (LVT) ratio (i.e. your loan amount versus the value of the house).
You Just Want to Know Your House Worth
Even if you do not plan to do any of the steps mentioned above, knowing how much your house is worth is important in preparing for the future. Plans and situations change; having access to updated information as to the value of your property can help you take the right steps at the right times.
How to Determine Your House Worth
Now you know why determining the value of your house is important… How do you do it? You can get to this information in different ways, including:
- Having an estate agent provide a valuation. Even if you have no intention of using an estate agent when selling your home, you can get a free valuation. It’s in their best interest; most offer a complimentary assessment – because it’s a chance to get a look at your property and pitch their services to you. Ask two or three estate agents to provide input.
- Instructing a valuation professional. You can instruct a professional to do a thorough valuation and give you an educated estimate as to your home’s worth. They will take into consideration multiple factors, such as the location of your property, its condition, and other important details.
- Use an online resource. There are multiple resources online that can help you get a sense of your home’s worth.
Knowing, `How much is my house worth’ is important because it empowers you with information and the ability to make decisions that best facilitate the competition of not only your sale but your future goals.