What Is The Value Of My Home?

The biggest investment you may make will most probably be your home. Determining the current and potential future values will help you decide how to move forward.

Investment Property Potential

Usually, a home will be both an investment and a place to live. When looking at properties, you may want to consider your options for the future. A perfect home for your family now and hopefully (over time) will increase in value and become a valuable asset. Look at your long-term goals in considering a home to purchase; it may be a great financial investment as well!

Equity

Once you have learned the value of your property that is only the first consideration in determining the profits and/or potential investment opportunity. Next, you will need to determine the equity you have in your property. Simply put, the definition of equity in real estate is the difference between the fair market value of the property and the amount of money you owe on the mortgage.  

When considering your potential return on investment, you must look at what your bottom line will be once your loan has been paid.

Market Changes Since Purchase 

You will need to look at your home’s original price, and then add the change in the market since the purchase date (If it is a property you are looking at buying, then this would be looking at the likely changes over a period of keeping the home.)

Look at the market inflation/deflation in the area since the time of purchase. Look at the local market, do some research, trends, improvements, these are all factors to consider. If market values have increased, ideally the value of your property will have a nice return on investment. In cases where it is a newer area or one that is in transition, you may need to hold the property longer to see a more sizeable increase in value.

Pricing Your Home

When pricing your home, you will need to find a balance. You want to list it to get the best possible price to maximize your profit, without pricing it too high that it sits on the market for a long time. Using some planning to determine a strategic price, like neighborhood comparisons to look at recent sales of similar homes in nearby areas. You will probably want to get an appraisal and you can also get an estimate from The Tom Team. This combination of research and data could prove valuable tools in deciding desirable pricing to take full advantage of your home’s value.

Assessing the Market

When thinking about purchasing a home, try to look for homes with the greatest long-term potential for profit. Some properties are more likely to increase due to their expansion possibilities, school districts, and overall location. You may need some luck with this estimation, but with some research and the help of The Tom Team, you are likely to find a home with great upward possibilities.  

All of these factors mentioned should be useful in your decision. You may want to gather some data on particular neighborhoods to see which will be the best fit for your new home and learn about the future investment potentials.