The Benefits of Keeping Up With Your Home’s Value
There are homeowners’ who remain acutely aware of their home’s value and others who don’t give it much attention. There are some very good reasons to keep your fingers on the pulse of how much your home is worth, however, ranging from improvement decisions to whether its time to consider a move. Here are some of the reasons you should keep an eye on your home’s value.
- It has a big impact on your net worth.
The value of your home will likely have a significant impact on your overall net worth. This is especially true if you have owned your home for a while and payments are beginning to have a bigger impact on your overall mortgage balance.
- It can provide access to equity.
As a home’s value increases, it is likely building equity. This is equity you may be able to tap into for opportunities, improvements or even emergencies. Knowing how much equity you have built up can be reassuring and even motivating.
- It may help you determine what remodeling projects to undertake.
If your home is increasing in value, taking on extensive home improvements may make more sense than if your home property value is stagnant or lessening. Keeping tabs on your home’s value can help you decide if a certain home improvement project is “worth it”.
- It can be an indicator that it is time to move on up.
If you’ve been fortunate enough to have a home increase rapidly in value due to location or improvements, it could be time to move up into an even more valuable property. Most of us want to continue to make financial progress in our lives and our home’s value can be a powerful way to achieve that goal.
- It may help you from overpaying on your property taxes.
Keeping an eye on your home’s value may prevent you from paying too much on your property taxes. If you feel your property is being valued at more than it should be, you can challenge your property tax payments.
- It can ensure you have sufficient homeowners’ insurance.
How would you know if you have enough homeowners’ insurance to replace your home if you don’t know what it is worth? Paying attention to your home’s value in conjunction with your homeowners’ insurance coverage can help you from having gaps in your coverage or even possibly overpaying.
You can usually keep up with general home values in your neighborhood by looking at what similar homes are being sold for in your area. A professional real estate agent may also be of help. For assistance with your homeowners’ insurance coverage, contact one of our independent insurance agents for a no-obligation insurance review and quote.