Why should you know your property value?
Market trends, home prices and values change of the time. You probably get a new assessment from your tax assessor each year talking about whether your property has gone up in value or down in value. The good thing is we are seeing our home values go up over the last couple of years rather than tank like they did about five years ago.
Finding out how much your home is worth is beneficial in many different ways. Are you considering refinancing? Whether you're refinancing for pulling money out for home improvements, college or other major financial moves or refinancing to a better rate and a lower term, knowing how much your home is worth can save you the steps that a mortgage officer would take to find out whether you have enough loan-to-value ratio. Typically, you need at least an 80/20 loan-to-value ratio before refinancing. For example, if you owe $400,000 on your home and your home is currently worth over $480,000, you will probably qualify for a home loan.
It's these important information tidbits that you'll need to know in order to apply for a standard home loan, sell your home for a profit, or apply for refinancing.
Another main reason people need to know their property values is if you're planning on selling. If you owe $400,000 on your home and you know your home is currently worth $480,000, then you can deduct sales tax in real estate commissions in order to find out a rough estimate on profit at closing.
But what if you owe more than your home is currently works?
There are a few steps to take at this point; you can either wait to sell your home or you can short sell your home. When you apply for a short sale you communicate with your lender and they will approve or disapprove allowing you to sell the home for less than what you owe on it. If you can wait to sell until the market turns around in your neighborhood or city, it might be a better option in the long run.
But the major thing now is to find out exactly how much your home is worth. With our new instant property value calculator you can enter in your address, correct any information about your home, and get a free property value estimate email to you immediately.
Start today by finding out exactly how much your home in Palm Beach County Florida is worth.