You’ll know what to expect
Selling a home without an accurate valuation is like shooting into the dark and expecting to hit the target. You’ll know the net proceeds from the sale once you’ve deducted the selling cost and loan balance from the selling price. If you already have the selling cost of similar properties around the locality and loan balance, all you need is clarity on the selling price. A home valuation allows you to gain this critical insight.
Helps you plan for a successful refinancing
While loans differ, lenders usually offer their customers a chance to use their properties to borrow to a certain threshold, which usually stands between 75 per cent and 96.5 per cent. Other credit demands would have to be met, including the accurate valuation of the home for better equity on the home. An accurate home value also gives you a proper picture of the mortgage you could get, even if you intend to refinance for easier rates, get cash to meet rising demands or access lower payment.
Access to another line of credit
Cash-out on mortgage refinancing might look palatable but not necessarily sound, especially if the interest rate is much lower in contrast with the market. As such, you can use HELOC (Home Equity Line of Credit) to access much needed cash using your home through a second mortgage. However, a specific level of equity in your home is needed (usually 20 per cent to 25 per cent) just like in refinancing. Knowing the accurate value of your home gives you the insight you need on the line of credit you could access.
Insight on when to improve the property
Undoubtedly, you’d like to make a few home improvements to raise the value of your property before putting it up for sale. An accurate home selling valuation will let you know whether it’s worth it. For instance, if your home is valued at £550,000 and the home prices around the area stand at about £600,000, investing around £40,000-£50,000 in new enhancements and upgrades won’t raise the valuation above £600,000 and might not be necessary but a waste of funds you could direct elsewhere.
Pay the right premiums and taxes
Any homeowner wants to have almost total control on due yearly property taxes and insurance premiums. However, without accurate home valuation, which determines what you’ll part with in terms of taxes and premiums due, you might actually end up paying more for these services. Accurate home value can help you prove that the assessment made by the service provider was way above and actually get a lower cost of the service.
Even if you’ve got no plans to access any of these services or do any of the mentioned things it’s highly important to remain in the know of the value of the property you own. Circumstances change all the time and you might find yourself in need of this information.