Even if you’re not planning on selling your home, it’s important to know your Colorado Springs home value for several reasons. Knowing your current home value can empower you as both a homeowner and a potential seller– after all, your home is one of your largest financial assets.
In this post, our team at Your Home Sold Guaranteed Realty - Barb Has the Buyers Team will explore five reasons to understand your home’s current value. That way, you can be prepared for the future, whether you intend to list this year or just want to assess your equity.
Deciding to Refinance
Knowing your home’s market value is important if you’re considering refinancing your mortgage to get better loan terms. Refinancing can help you get a better rate, a lower payment, or allow you to take cash out for other expenses.
When you go to refinance your mortgage, the amount you can borrow is tied to your home’s appraised value. If your home has significantly increased in value since you purchased it, this gives you more equity to leverage for favorable refinancing terms.
Deciding on Home Improvements
Knowing your home’s market value can help you determine which home improvements or renovations are worth the investment. Certain renovations like kitchen and bathroom updates provide a higher return on investment and boost resale value more than others.
If your home has increased substantially in value, you may have more equity to leverage for larger projects with a good ROI. Or you may find you don’t need expansive improvements if your home value is already competitive as-is. Determining your home value gives you more context to weigh the costs and benefits of particular home improvements.
Obtaining a HELOC
Monitoring your home’s current market value also positions you to tap extra income potential through home equity lending options. As your property appreciates and you build equity, products like home equity lines of credit (HELOCs) allow you to access this stored value.
HELOCs act as revolving credit lines secured against your home. The amount you qualify for is based on your loan-to-value ratio – your outstanding mortgage balance compared to the property’s appraised market value.
Keeping a pulse on your home’s worth helps you assess if and when a HELOC makes sense to generate supplemental income.
Preparing For the Future
Keeping up with your home’s current market value is crucial to stay prepared for the future, whether you plan to sell soon or not. Real estate markets shift all the time, and home prices in your neighborhood could rise or dip unexpectedly over months or years.
By monitoring your home’s worth at regular intervals, you avoid making uninformed financial decisions down the road.
Planning a Home Sale
Lastly, knowing your Colorado Springs home value is key if you’re planning to sell your property. Your home’s market value will influence your pricing strategy and your asking price.
If you know how your home compares to other homes on the market, you’ll be able to choose a competitive yet fair price that attracts buyers. An experienced realtor can help you find a balance between generating buyer interest and making sure you get top dollar for your home.
Work With Us to Find Your Colorado Springs Home Value
The best way to find your home’s market value in Colorado Springs is by working with an experienced local realtor. At Your Home Sold Guaranteed Realty - Barb Has the Buyers Team, Barb Schlinker and our team have been working in the Colorado Springs area for over 25 years.
Our in-depth knowledge of the local area and housing market trends means we know how to evaluate what your home is worth.
Our accurate home valuations are why we’ve been able to outperform other realtors in the area when it comes to home sales. On average, we sell homes 66% faster and for $20,520 more money. Plus, our Guaranteed Sale Program, protects your interests during the home-selling process.