What Is Your Home Value?
If you’re fortunate enough to live in North Texas you’ve no doubt seen plenty of media stories about our region’s rising home values. So, it’s only natural if you’ve been wondering, “What’s my home worth now?” Well, the reality is there’s more than one answer. Your home actually has three potentially very different values…
If your home is destroyed by a disaster, like a fire or tornado, replacement cost is what it would take to remove debris and rebuild. Most experts agree that homes should be insured for 100 percent of the minimum estimated replacement cost. If your home is not, you run the risk of coming up short if the cost to rebuild is more than your coverage will pay.
Property Tax Value
This is the number taxing authorities use to calculate your property tax bill. Typically, property tax values are meant to approximate a home’s market value, though sometimes there are large discrepancies between the two because of outdated assessments or mistakes by assessors. If the property tax value of your home exceeds the market value, consider contesting the value with your taxing authority. The market is so crazy these days that I have witnessed many taxing authorities in North Texas overvaluing homes, and I have helped many clients with information to contest their property tax value. It’s very important to pay attention to that value!
This is the measure most of us think of when trying to estimate our home’s value. Determined in part by the price people have paid or are willing to pay for similar houses in your neighborhood, market value is not based on what you paid for the home or how much it cost to remodel that beautiful new kitchen or master bath.
Determining market value is a job for a properly educated real estate professional, like yours truly, of course. If you’re considering offering your home for sale, let me know. I’m happy to run some numbers for you to see if the value you have in mind is consistent with what the market says your house is worth. And really, now is the time – I ran some numbers for a client in September but she wanted to wait until she found a home she wanted to purchase before she listed her house, so a month and a half later, I ran numbers again when she was ready to list…her value had gone up about $12,000 due to 3 good sold houses (i.e., comps or comparable properties) that had closed in between. I couldn’t quite believe it myself! Bottom line, if you’re considering selling, please get in touch, I’d love to help!