Valuing a real estate property is referred to as property valuation or realty appraisal. But, why you should know the total worth of your property when you already own it and living in. Well, whether you plan to stay there forever or sell it soon, knowing the total worth or value of your property and understanding the significance of property valuation are the basic aspects of your financial condition for two important reasons:

  • Taxes
  • Insurance

How Much is Your Property Worth?

The most effective method to know the home’s worth or value is to use the virtual property valuation tools offered by different financial institutions and real estate websites. All these tools are designed to use your state’s public property records to estimate your property’s total worth and value. Since these tools offer an estimated value, it may not always be accurate.

The real estate agents and valuer from the lending agencies can also determine your property’s value and total worth based on the comparative market analysis. A professional property valuation is the best choice to have the most precise valuation of your property. The process involves the physical inspection of the house inside and outside. Many other factors are considered, including repairs needed, square footage, floor plan, similar house sales, and surrounding neighborhood.

What Does an Undervalued Property Mean?

An undervalued property means undervalued insurance. The property’s appraised value estimates the homeowner’s coverage. It is the method that is used to estimate the coverage required for “exact cash value” or “the replacement cost” of the property. So, homeowners must stay updated about the present property value and appraisals.

The property value is rising in all major states of America. Many major cities, towns, and counties registered a price hike around 8-9 percent last year. If you purchased your property ten years ago, the property worth might be a quarter more than what you have paid ten years back. If you have made any changes or renovated your property, which could impact the property’s total value, let your insurance company know about it. It is a good move to review the agent’s annual insurance coverage to stay updated about your property’s value.

You can find these tools at-