With property prices rising dramatically over the past few years, you’re probably interested to know what your home is now worth.
Having your home professionally appraised can do more than just satisfy your curiosity. Here are five reasons why it can be really important to know your home’s value.
Understanding the market
Is it a good time to sell or should you wait? Should you sell at all? An appraisal will often help you find answers to these questions. The property market is always going through peaks and troughs, so knowing the state of the market and your home’s likely sale price will help you make an informed decision.
Downsizing?
If the kids have left home or retirement is around the corner, you might be thinking of downsizing. Knowing what your home will sell for will help you determine what you can afford to spend on your next home, and how much, if any, you’ll have left over.
Upsizing?
Maybe you bought what you could afford at the time and now your family is growing or you simply need more space? Knowing what your home could potentially sell for will determine the size of deposit you’ll have for your next home.
What you’re sitting on
Being informed about the value of your home can help you decide on the way ahead. Should you sell or is it smarter to renovate your current home? Or perhaps even knock it down and rebuild? There are some areas in which it’s not worth overcapitalising (spending money) on your home, and others in which it is profitable when it comes to selling. If in doubt, it’s worth having a chat with your appraiser about this.
The potential to invest
In simple terms, the difference between what you paid for your home and what it’s now worth, is the equity you have in it. Equity is very useful, as you can use it to buy a second property, either as an investment or holiday home. Equity also lets you borrow against your home, and then use that money to renovate for instance.
