Importance of Knowing your Home’s Worth

Importance of Knowing your Home’s Worth

Your home is probably your biggest asset and so many people are keen to monitor its value even if they aren’t considering selling. However, if you are looking at moving to a new house, undertaking a big life-change, or working out your finances, you will quickly find that knowing the value of your current home is important. 

Here are some of the key reasons why it is important to know your home’s worth.

 

Make sure you aren’t short-changed on your sale

Whether you are up-sizing, down-sizing, or simply relocating, you deserve to get the maximum amount that you can for your home. Knowing the value of your home will place you in a strong position when it comes to pricing your home. Unfortunately, it is not unheard of for some less then desirable realtors to recommend a lower price on a home to turn around a sale and receive their commission quickly, rather than marketing it at what it is truly worth and potentially needing to wait a while.

Knowing what your home is worth is also important when it comes to negotiating with buyers who may make offers lower than your asking price. While you may be prepared to accept slightly less in order to secure a timely sale, you certainly won’t want to sell your home for far less than it is worth. 

 

Don’t overpay on capital gains tax

Capital gains tax is tax due on the profit you have made when you sell an asset that you own. This means that it is a tax on the gain you have made, rather than the overall selling price of your home. Nevertheless, you will want to ensure that the capital gains you are reporting to the IRS are based on fair market value, rather than an over-inflated price. 

 

Ensure you are comprehensively insured

When you own a home, being insured against theft, fire or other damages can be essential if you are to be able to replace or rebuild if something unfortunate happens. However, for your claim to be accepted, it must be based on an accurate estimation of the value of your home and the contents inside it. A third-party appraisal of what your home is worth can be an essential and extremely valuable tool when it comes to securing comprehensive insurance. 

 

Planning for retirement

You may not want to think particularly far in the future, but there is no getting around the fact that by the time you give up work, you will want to be free of the constraints of a mortgage. You may also want to think about downsizing and freeing up some of the capital in your home so that you can put it towards day to day living expenses or that vacation of a lifetime you have been planning. Knowing what your home’s worth can help you to make smart decisions about your retirement years and beyond. 

 

Want to figure out your home’s worth? Call Altmann Ayala Realty Team today at 858-216-2700

 

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