The importance of knowing your property’s value
Most homeowners know what they paid for their property and how much their monthly mortgage is but not everyone knows what the current value of their property is. Why does it matter? If you are living in your home, intending to continue living there for the foreseeable future and making the mortgage repayments then why would you care about its current market value.
The current market value is important for a whole host of reasons, for; insurance purposes, property tax, financial planning and of course when selling, downsizing or trading up.
So how do I tell what my property is currently worth?
Well, the first port of call should be the property price register. Every residential sale in Ireland now has to be documented on the property price register. You can search this database for similar properties that have sold recently in your estate or area. This should give you a rough guideline as to what your property is worth, bearing in mind the various differences between your home and the ones sold. By using the property price register as a reference you can also see if house prices are on the rise or not. The next place to look is at similar properties currently advertised for sale. It’s worth noting that the advertised price doesn’t necessarily tell you what a property is worth especially for properties advertised for quite some time.
When assessing your property for this it’s the current market value that you should consider. By undervaluing your property you could find yourself paying a fine in the future and by overvaluing it you could find that you are paying additional tax every year. Find out more about LPT here
a lot of homeowners fall into the trap of using the current market value or their original purchase price when getting a quote for home insurance. This will generally lead to much higher premiums. You should always use the rebuilding cost when getting a home insurance quote. What would it cost you to rebuild the property if it was destroyed by fire etc. You can find a handy rebuild calculator on the SCSI website
It’s good to assess your current net worth before making any major decisions. By checking the current market value of your home you can assess if you are in negative equity and if so by how much. This information is extremely important when you are making major life choices or talking to your bank; especially if you are considering downsizing, trading up or upgrading your home.
This is perhaps the most obvious time that you should know the true market value of your property. A property pitched at too high a price will not sell quickly and may ‘go stale’ in the market and an underpriced property will not give you the best return on your investment. At the point of sale not only should you do your own homework as to your property’s value but you should also talk to a property professional and get their expert opinion. At Liberty Blue Estate Agents we’d love to hear from you if you’d like to know the current value of your property, you can find our contact details here