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4 Powerful Things You Can Do With a Home Valuation

Real estate prices have literally never been higher than they are right now. According to the Wall Street Journal, home prices nationwide are climbing to new heights thanks to some serious buyer demand and record-low inventory levels. This means that, for the average homeowner, your property is probably worth more than you think it is right now. 

So what? So your home is worth more than it was a year ago, why does that matter, and why does it matter if you know how much your home is worth? 

Knowing the market value of your home is a powerful tool for a homeowner because it unlocks opportunities you wouldn’t have otherwise. In this article, we’re going to discuss four things you can do with an accurate snapshot of your home’s market value and show you an easy, free, and precise way of getting your home’s number. 

  1. Sell Your Home

The old adage goes; “Buy low, sell high”. Right now, it’s pretty close to impossible to do otherwise, and for some homeowners, just how high can be a real surprise. According to the National Association of Realtors, the median prices for an existing home shot up 19% in April 2021 over the same month in 2020. 

This means that if you’ve been considering whether or not right now is a good time to sell, you should be looking closely at what your home is worth, because you could be cashing quite a large check as a result of a sale. 

Of course, there are always drawbacks here. Selling your home might net you a hefty set of proceeds, but remember, the next home you buy is likely going to be expensive too. However, we are also seeing near-record low mortgage rates right now too, so your strong sale proceeds combined with advantageous mortgage rates (especially for well-qualified borrowers) means you can get a lot of house for your money right now. 

One way or the other, if you’ve even considered the possibility of selling your home, knowing your home value right now in today’s market is a good idea. 

  1. Lower Your Monthly Mortgage Payments

No, I’m not talking about refinancing your mortgage. 

If you put less than 20% down on your home when you purchased, you’re likely carrying an additional monthly mortgage expense called Private Mortgage Insurance, or PMI. Typically, banks require a PMI payment until borrowers have between 20% – 25% in equity on their property. With the dramatic increase in home values, many mortgage borrowers owe less on their home as a percentage of the overall value than they did just a year ago. 

With this increase in equity, you may be able to drop your private mortgage insurance payment, a move that could save you upwards of $150 a month, depending on your mortgage amount. 

If you purchased your home in the last five years and put less than 20% down, you should know how much your home is worth; it could be the difference between PMI and no PMI. 

If your home valuation gives you the right amount of equity to drop PMI, you can request an official appraisal from the bank, which is the first step in removing this costly extra payment, saving you thousands of dollars. 

  1. Renovate Your Home With New Found Equity

Been thinking about a new kitchen or bathroom? Maybe your home needs a new roof? Whatever the project may be, you may be sitting on the money for the project in the form of a rise in your home’s value and not even know it. With a home valuation, you may find that you have more equity in your property than you thought. 

With this extra equity, you could borrow money against your home to complete much needed renovations that will add value to your home and improve your quality of life, a win/win for sure. 

Home equity lines of credit have some of the lowest interest rates out there for loans, so this may be the cheapest option for getting this money you’ll ever find. 

PS –  Brick & Corbett knows exactly which sort of projects are going to add value to your bottom line when it’s time to sell and which won’t so if you want your renovation to be strategic, let us help you decide which renovations to tackle and which to leave for the next buyer.  

  1. Purchase an Income Property or Vacation Home

We know, it sounds crazy, but you may be able to purchase an income-generating property right now for virtually no money out of your pocket, and the first step is simply getting an updated and accurate picture of what your current home is worth on today’s market.

With an idea of what your home is worth right now, you could start the process of borrowing against your home’s current value. Instead of using those borrowed funds for things like the home renovations we mentioned above, you could use them as a down payment for an income-generating property like a short-term vacation rental. 

Sure, this equity would likely only be the down payment for a mortgage, but with such high earning potential for income properties right now, the rents you would collect would likely easily cover your mortgage payment, your home equity loan payment, and even leave a little cash left over for you. 

Bottom line; getting an accurate home valuation may be the start to your career as a property investor. 

Bringing It All Together

The Brick & Corbett Team knows that homeowners can do a LOT when they are armed with the knowledge of their home’s current market value. If you decide you want to sell, great, we’d love to help you with that. Homes have never sold for more, and our team knows exactly what to do to make sure your property is positioned in front of the right buyers at the right time. 

If you don’t want to sell, that’s ok too. 

We believe that EVERY homeowner, regardless of whether they want to sell or not, should have the opportunity to leverage their home’s value, which is why we’re offering free, no-obligation, personalized home valuations to anyone who asks. 

No catch, no sales pitch, nothing. 

You’re a part of the community, so are we. We want to use our knowledge and experience to give you what you need to make a better life for you and your family. 

But, please remember, the numbers you get today are just that, today’s value. Real estate values change all the time, and in markets like these that are moving aggressively, there’s no guarantee that the opportunities that exist today are going to be around in a year or even six months from now. 

So, if you want to know what your home’s value is and we can help you with the next steps, we’re ready to talk. 

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