Knowing Your Home’s Value for Sale

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Do you know your home’s value for sale? Whether you have been a longtime Carmel or Westfield homeowner or are new to the Carmel or Westfield real estate markets, it’s important to always have an idea of your home’s worth, even if you’re not looking to sell anytime soon. You may think you’re not in the market to sell, but sudden changes in your lifestyle like marriage, kids, a new job in a new area or the loss of a job may cause you to move sooner than you plan. A home’s value fluctuates up and down and varies depending on a number of factors like current market conditions, the condition of the home and the values of comparable properties.

Knowing the value of your home at any given time and knowing what can affect your home’s value can help you improve your home’s value and get the highest price possible when you are ready to sell. We’ll explore several specific reasons why it’s important to know and understand your home’s current value.

The first reason to know your home’s current value is to know when it’s a good time to sell. While it’s true that your home is only worth what a buyers willing to spend, knowing your home’s value can give you a ballpark figure to determine how much you could make (or how much you’ll have to spend) at closing. If your home’s current value shows you may have to bring money to closing, it may not be the best time to sell.

How do you determine what you’ll get back (or spend) at closing? Your net proceeds (what you’ll get back at closing) equal the selling prices minus your loan balance minus any closing costs like realtor fees, closing fees and title costs. For example, say your home is worth $250,000, you still owe $205,000 on your mortgage and other closing costs equal $20,000. So $250,000 minus $205,000 minus $20,000 equals $25,000…this is your net proceeds, what you would get back at closing.

As your Realtor in Carmel and Westfield, I can help you determine your home’s current value based on the Carmel and Westfield markets and also give you better estimates of what closing costs would be. I can also help you find out how much you still owe on your current mortgage. Contact me today!