What’s My Home Worth?
Our expert mortgage lenders know from experience that the answer to this important question can differ greatly depending on who’s asking and what they want to know.Team Mortgage Company will work alongside you and your realtor to help determine your home’s value and work with you to maximize your options. We have provided a home value estimate tool to help you gain a basic understanding of where you stand on your home’s current value.
Fill the form out above to see what your home is currently worth. Please keep in mind that this is a very general estimate and that you should contact an experienced mortgage lender to help you determine a more exact value.
If you are like many West Michigan homeowners, the tumultuous events of the past few years have left you wondering what the value of your home is today. Your home’s three price tags are based on its market value, replacement value and property tax value. Different values can be used for different reasons and these values may be moving in different directions at the same time.
This is the most commonly referenced calculation of your home’s value. It’s the price a buyer would pay for your home in today’s housing market, no matter what you paid for it or how much you’ve added in updates and upgrades.
If you’re planning to sell your house, market value is what you hope to get for it. In a buyer’s market like most of Michigan today, your home’s market value may be lower than you’d like. You might not have as much leverage against a buyer who wants to negotiate, but it’s where you need to start.
You also should know the market value so you can calculate how much equity you have in your home. Home equity is calculated by subtracting the amount you owe on your home from its market value.
In the event of a total loss, replacement cost helps you rebuild your home based on current construction costs in your area. Replacement value can include the additional cost of tearing down and hauling away the old structure. Also, homebuilders offer volume discounts that can drive down the price of new homes and may not necessarily reduce replacement costs.
Replacement value is the number that insurance companies use to determine the amount of dwelling coverage needed in your homeowners policy.
Property Tax Value
This is the number used by taxing authorities to calculate your property tax bill. A given home may be taxed by more than one property tax jurisdiction — hospital and school districts, for example — and each may apply its own math. Typically, property tax values are meant to approximate the market value.
The property tax value of your home is going to drive your property tax bill. Sometimes, there’s a big discrepancy between the property tax assessment and the market value. Perhaps this is due to the assessment being outdated, which could cause your homeowner’s tax bill to be too low or even too high. If the property tax value of a home exceeds the market value, consider contesting the value with your taxing authority to reduce your tax bill. Also, be aware that certain actions, such as remodeling, could cause the property value to be reassessed and result in a larger tax bill in the future.
For more information about your home’scurrent value, contact the licensed residential mortgage specialists at Team Mortgage Company — or call us directly at 616.974.9710 — and let us prepare a personalized mortgage quote for you today.