Your home may be the largest single investment that you have. All the decisions you make regarding your home have a big impact on your financial well-being. Some of these decisions are so important that they require certain information if they are going to be made properly. A market appraisal of the current value of your home can give you the information you need to make those decisions.
If you are considering adding a bedroom, or modernizing the kitchen or making some other improvement, you must know how this improvement will affect the resale value of your home. Will it over-improve your house when compared to other homes in the neighborhood? How much of the improvement costs will you be able to recover when the time comes to sell? After receiving the cost estimates from your contractor, ask your Realtor® to provide current market data so that you can analyze the resale impact of this decision.
If you are thinking of buying a more expensive home, you will have to know how much you will receive from the sale of your existing home. Many prospective home buyers commit themselves to the purchase of a higher-priced home without knowing what their existing home is worth. They are sometimes disappointed to learn that they are not going to have a much money for a down payment as they thought. If you have your existing home appraised before you begin house hunting, you will know the price range that you can afford.
If you have decided to sell your home, you should not price it based upon hearsay or hunches. Your real estate agent has access to the latest market statistics, including information on recent selling prices and competing homes that are now for sale. This data can remove the guesswork from pricing decisions. Your asking price will be able to compete effectively for buyer’s attention, allow for some negotiation, and give you the highest possible financial return.
ADVICE: Even with over thirty six years of selling Naperville area real estate, I find value in practicing what I preach. My wife and I own real estate in Naperville and other areas of Illinois and find value involving another Realtor in my personal real estate transactions. Take a step back, evaluate your needs, and wisely involve a professional that you determine you can trust.
