If you are like me, you’ve probably felt some relief as the value of your 401(k) and other investment accounts have bounced back over the last year and a half.  In fact, those monthly or quarterly statements can feel very reassuring (or downright unwelcome) depending on the direction of the market.   But what if your financial advisor, online trading account or plan administrator didn’t provide you with a statement? 

Unlike most securities and other investments in those accounts, real estate is difficult to value, is relatively illiquid, and its valuation subjective.  It is, after all, worth only what an able buyer is willing to pay, and what would a buyer today pay for your home – how has the value of this most personal asset performed relative to your others?

There are a variety of important reasons to understand the realistic, current market value of your home and to stay current by seeking the opinion of a third party on an annual basis.  These reasons include:

• Wealth Management:  Understanding your overall net worth by realistically assessing your real estate asset value and debt liability.  You may actually be pleased to find that the value of your home in Milton, despite the national headlines, has fluctuated far less than other asset classes.
• Refinancing and Home Equity Financing: With interest rates still near historic lows, and the future availability of long-term inexpensive home financing in question, you may soon opt to refinance from a higher rate or variable rate loan.  Before you begin that process, you should be reasonably confident that your home’s appraised value will be sufficient to close the financing.  Similarly, you may want or need to tap a home equity line of credit to fund a new business, finance a family member’s education or to improve your home.  If a home equity line is part of your financial plan, you should clearly try to determine how much equity you have in your home.
• Confirming adequate insurance:  If disaster, such as a fire, were to strike, would your insurance cover the losses?  Clearly not a pleasant thing to contemplate, but prudent to address.
• Estate planning:  Assuming you have provided a means for your assets to be distributed upon your death, will your plan minimize the tax burden your heirs might face? Underestimating home equity could force loved ones to sell the family homestead to cover inheritance taxes.  Admittedly, another unpleasant topic, but an important consideration for many families.

The free preparation of a Comparative Market Analysis (CMA), a useful tool for estimating the value of your home – and for addressing any or all of the points raised above – is one of the services that I provide.  I am dedicated to providing very professional real estate seller and buyer representation in our community and am always looking for listings and buyers to represent.  However, I understand that you may be a few, or many, years away from selling your own home.  Still, whatever your plans, I would welcome the opportunity to prepare a CMA for your home and to meet to discuss it with you.

Bethany Bonner
RE/MAX Best Choice
617.320.5450 (direct)
508.848.2161 (fax)
bethany@bethanybonnerhomes.com
www.bethanybonnerhomes.com