REFINANCING

Lenders base the amount of their loans on the value of your property and usually allow you to borrow a maximum of 75% against your property. Knowing what your property is worth allows lenders to calculate your equity in the property. The more equity you have, the better terms you will receive on your refinance.

Property IMPROVEMENTS

If you’re doing property improvement projects to increase the resale value, you want to make sure you’re not pricing it out of the market. If your property is already priced on the high-end for your neighborhood, making too many improvements could make it more difficult to sell. When you get a valuation, you can see how your property compares with others in the neighborhood and let this guide your property improvement decisions.

QUALIFYING FOR CREDIT

If you want to borrow cash against your property, getting a Home Equity Line of Credit (HELOC) could be a good option. To qualify, you must have a certain level of equity in your property. Most lenders require at least 20%. Getting a property valuation will help you determine if you qualify and will be used by the lender to make a decision on your loan.

PLANNING

Though it’s not a necessity, simply knowing the value of your property is good information to have. It will help you plan for the future and deal with unforeseen circumstances when you might be in a position that requires extra money or a quick relocation. Knowing how much equity you have in your property and how much you may be able to borrow against it or sell it for will help you respond to any financial curveballs that life throws at you.