Many homeowners will think about doing a home valuation when considering selling the house. But home valuations can be helpful in other ways besides transactional information. You need to know your home's value to make almost any major decision about your property. For example, if you want to do a kitchen remodeling project, you need to know how much value it will add to your home; you can only know that if you have the correct value before the project. Here are several reasons to consider having an updated valuation of your home:
1. Accurate Selling Price
A home valuation is standard practice when selling a house. It gives you a good estimate to work with. You avoid the risk of quoting a too-high figure and lacking takers or having the house on the market for too long. You also avoid time wasters and lowball figures.
An accurate home valuation is also important in deciding to sell or not to sell. The returns on the sale are the difference between the mortgage balance and your current value. You can opt to wait a little longer for better returns if the valuation doesn't turn out as you expected.
2. Home Improvement Preparation
Home valuations come in handy when considering expensive home improvement projects. For example, you estimate a kitchen remodeling project will cost $40,000, but your home valuation estimates a home value of $350,000 in a neighborhood where the average price is $380,000.
Such a home improvement project won't make financial sense if you are improving to sell because you wouldn't recoup your investments. You can make better decisions on the kind of home improvement projects to do.
3. A Line of Credit
Are you out of credit options? You can access credit with your home as collateral using a Home Equity Line of Credit (HELOC). A HELOC line of credit has a lower interest rate because a home is a very secure collateral.
Home valuations help decide on the credit line you can access with HELOC. You will also assess other credit options where your home is acceptable collateral.
4. Home Refinancing
Home refinancing facilities let you borrow against your home before you finish paying off your first mortgage. Home refinancing is a good alternative to a personal loan because the payment period is longer, with lower interest rates. Lenders require home valuations to determine the amount of money you can access.
Would you like to have an accurate figure of your home's worth? Visit a website such as ScottGHarrison.com to learn more.Share