For the average person, their home is typically the biggest investment they will make in their lifetime. So it’s really important that homeowners have a general knowledge about their home’s value.
You probably know how much money you have in your savings account, or how much stock and bonds you own. You may even know the value of your 401-K retirement funds. But do you know how much your home will get on the open market right now?
Sooner or later, everybody sells their home. Even if you aren’t planning on moving anytime soon, knowing your home’s value is just financial common sense.
Estimating Home Value
Fortunately, estimating the value of your home is relatively simple. A quick call to your local realtor will give you a pretty good idea of how much you could sell your home for in the current market.
Another way is simply to go to one of the big real estate websites like Zillow, Trulia, or Redfin and look for homes in your area that are similar in size and features. How much they are listed for is basically what your home is worth right now.
Increasing Home Value
Some financial assets are difficult to control. You can’t easily raise the value of the stock you own or affect the value of your retirement account. But you can increase the value of your home by making improvements to its physical condition.
Replacing an outdated kitchen or bathroom is one of the fastest, most effective ways to increase home value. Plus, as the homeowner, you get to reap the benefits of the updated kitchen or bathroom as you continue to reside in the home.
Even if you plan on spending years or even decades to come in your current home, upgrading a kitchen, a bathroom, or both can improve both the functionality and value of your home.