Those of us fortunate enough to live in North Texas have seen plenty of media stories recently about the strength of the local housing market and rising home values. So, it’s only natural that you may be wondering, “What’s my home worth now?”
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 – 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.
Understanding your home’s market value can help you determine your total net worth and how much equity you have in your home.
Determining market value is a job for a properly educated real estate professional. If you’re considering offering your home for sale, we recommend contacting an Ebby agent to determine the market value of your property. At Ebby Halliday, we take our fiduciary duty to provide current market research and strategic advice very seriously.
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meant to approximate a home’s market value, though sometimes there are large discrepancies between the two because of outdated assessments or mistakes by assessors.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. Be aware that certain actions on your part, such as remodeling, could cause a reassessment and result in a larger bill.
If your home is destroyed, by say, a fire or tornado, replacement cost is what it would take to remove debris and rebuild based on local construction costs. 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.
To learn more about the value of your home, contact a Dave Perry-Miller Associate today. To get started, visit DavePerryMiller.com.