People often tend to look for a better investment while buying the house as your home is one of the major investments in your life. So, they often wonder if buying a home is really a good investment or is renting a good option and what actually is the value of their home.
So, if you have ever wondered what your home worth really is, the answer is pretty easy. The amount that someone is willing to pay for is the worth of your home. It often depends on the market, the location, and whether you’re asking an agent or a lender. There are many factors that can impact a home’s value which is worth knowing about.
Some of the factors that affect your home worth are as follows:
Location and neighborhood:
This is the most important factor that people consider while buying a home. People often look upon the areas with schools, workplaces, low crime rates, and other development facilities.
Age and condition of your home:
Generally, newer homes will sell for more than older homes because there’s less possibility for necessary immediate repairs. But if your older home has been well-maintained it may be more worthy than the newer homes. The condition of the home is important because the home’s foundation, plumbing, structural integrity, and availability of water and electricity are all worth considering.
Just like any other economic asset, your house’s worth may or may not fluctuate based on the changes in your area’s economy. If there’s plenty of people looking to move to your area and a shortage of houses in the area your home worth will increase. Similarly, the price may fall if there are plenty of houses available.
History of the area:
Believe it or not, this is one of the most important aspects that decide your home’s worth. If your neighborhood area or streets is associated with high crime rates your house rate may decrease. Potential buyers tend to look at the histories of places before investing in it. So, it is impossible to hide your house history.
In order to hex calculate your home worth, you can take the help of the professionals who prepares you to buy, sell, tap into your home’s equity or even negotiate lower property taxes or you can also take the help of some online tools like CAGR calculator.It saves your time and money as it is completely free and easier to use.
CAGR the abbreviation for Compound Annual Growth Rate is the annual growth rate a business has over a period of time. CAGR is an accurate measure to calculate and determine returns for anything that can rise or fall in value over time.
It measures the average yearly growth of your investments and tells you the average rate of return you have earned on your investments every year. CAGR is always expressed in percentage.CAGR calculator is also helpful in your business as it tells you if your business is growing with time and whether the profits generated are being invested correctly.
Follow the following steps to calculate your home’s worth using a CAGR calculator:
1. Enter the initial investment value of your house.
2. Enter the expected final or future investment value of your house.
3. Enter the time duration between the initial and final values.
4. Click on the “calculate now” button.
After you click the ‘Calculator Now’ button, the CAGR calculator generates you the average rate of return in a percentage of the total growth in dollars on your home’s investments in just a matter of seconds.
Suppose your initial investment value is Rs.1000 and the final investment value is Rs.5000. You use the CAGR calculator when the time duration is of 2 years. In this case, your investment value is calculated as 123.60%.
Understanding the proper idea:
Take note that the CAGR is just an indicative figure based on your expected investments and not a real one. Although the CAGR calculator is very useful, it has some limitations that one should be aware of because it can lead to wrong investment decisions. One such limitation is that the CAGR calculator does not consider the aspect of volatility as it only asks for the initial and final values and assumes that growth is constant over the duration of time. To get a more detailed analysis connect with a real estate professional to get a more accurate estimation of your home’s worth.
So, before selling your home look at the numbers regarding your home’s worth and return on investment. Check whether you have a positive growth percentage and enough money to invest in a new house or whatever you plan to do. If you have a better understanding of your timeline and your finances it can provide you a good insight into whether you’re ready or not to sell your home. Always remember that your house is an asset that may have your sentimental values attached with and calculating its value with online tools like CAGR calculator will help you ensure you’re making a wise financial decision.…