By Val Logaridis
I like to think that most of my friends and clients know the true value of “home and hearth,” but I sometimes wonder if they really know the dollar value of their property. Apart from the fact that this is something that we all like to know, there are also many key decisions that cannot be made accurately without the use of this knowledge.
- Is your home adequately insured?
If the unthinkable were to happen, would your insurance cover the losses? In Canada, a country that has experienced real estate escalation and several wild fires in recent years, many devastated homeowners learned the hard way that their homes were underinsured.
- Is your estate plan based on a realistic estimate of your home’s worth?
Assuming you have provided a means for your assets to be distributed upon your death, will your plan minimize the tax burden your heirs may face? Underestimating home equity could force loved ones to sell the family homestead to cover inheritance taxes.
- Have you built up equity in your home that you could use for other things?
Could home equity be put to use in financing your children’s college or university education? Funding a business? A more active retirement plan? Home Improvements? An Investment Property or a Second Home?
- Do you know how to calculate the value of your home?
A Comparative Market Analysis (CMA) is the only tool that provides current pricing of homes in your style in your area. With a recent CMA and knowledge of your home’s condition relative to others that have tested the market, you will know an accurate dollar amount for your home. If you would like to be amongst the few who are informed, make sure you request an up-to-date Comparative Market Analysis (CMA) from a Registered Real Estate Salesperson.
Val Logaridis is a Sales Representative with Royal LePage R.E.S. Ltd, Johnston & Daniel Division. Val is a regular blogger with Muddy York.
