What Is Your Home Worth?

What is a home valuation?

A home valuation is an informed estimate of what your property would sell for in the current market. In residential real estate it usually takes one of three forms, and they are not interchangeable.

• An automated estimate — the number you see on listing portals. It is generated from public records and past sales, and it has never seen inside your home. It cannot know that you replaced the roof, or that the identical floor plan next door backs onto a busy road.
• A comparative market analysis (CMA) — what a real estate professional prepares. It starts with recent comparable sales near you, then adjusts for the things that actually differentiate your property: condition, updates, layout, lot, view, and what is currently competing with you for buyers.
• An appraisal — a formal opinion of value from a licensed appraiser, usually ordered by a lender once a property is under contract.

The Lus Realty Home Value + Equity Review is the second kind, delivered as a conversation. We look at your property, the comparable evidence, and your situation, then explain how we arrived at the range rather than simply handing you a figure.

Why should homeowners know their home's value?

Your home is likely the largest asset you own, and its value moves whether or not you are paying attention. Knowing roughly where it stands lets you make decisions on evidence instead of assumption. Homeowners typically use a current valuation to:

• Decide whether selling now, later, or not at all makes financial sense.
• Work out what they could afford on their next property.
• Judge whether a renovation would return more than it costs.
• Review whether their insurance coverage still matches the property.
• Plan around divorce, an inheritance, retirement, or a job relocation.
• Understand whether refinancing or a home equity line is worth exploring.

Even homeowners with no intention of selling benefit from knowing the number. It is the difference between choosing your timing and having it chosen for you.

What is home equity?

Home equity is the share of your property that you actually own outright — its current market value minus everything secured against it.

Market value − outstanding mortgage balance and any other liens = your equity.

If your home would sell for $600,000 today and you owe $340,000 on your mortgage, your equity is roughly $260,000. It grows two ways at once: as you pay down the loan, and as the property appreciates. A second mortgage, a home equity line of credit, a tax lien or a contractor's lien all reduce it.

Equity matters because it is what funds your next move — the deposit on the next property, the cost of relocating, or simply what you keep. It is worth stressing that equity is not the same as cash in hand. That is where net proceeds come in.

What are net proceeds from selling a home?

Net proceeds are what is left after a sale closes and every cost has been paid — the number that actually reaches your account. The headline sale price is only the starting point.

A net proceeds estimate typically works down from the sale price through:

• The outstanding mortgage payoff, including interest accrued to the closing date.
• Real estate brokerage commissions, as agreed in your listing agreement.
• Title, escrow and settlement fees, and any transfer or documentary taxes that apply where you live.
• Property taxes, HOA dues and utilities prorated to closing.
• Any repair credits or closing costs you agree to cover for the buyer during negotiation.
• Pre-listing preparation you choose to do — cleaning, staging, storage, minor repairs.

Two homes that sell for the same price can produce very different net proceeds, because loan balances, local transfer taxes and negotiated credits all differ. This is the figure most homeowners actually need in order to plan, and it is the one automated tools never give you. If you ask for it in your review, your Lus Realty professional will walk through the line items with you.

Costs vary by property, lender and county. Any figures discussed in your review are estimates for planning purposes, not a formal settlement statement, and are not tax or legal advice.

When should you consider getting a home valuation?

Earlier than most people think. Homeowners who get a valuation six to twelve months before listing consistently have more room to act on what they learn — which repairs are worth doing, which are not, and when to bring the property to market.

It is worth requesting one when:

• You are starting to consider a move, even loosely.
• Your household needs are changing — a new job, a growing family, an empty nest.
• You have inherited a property and need to understand what it is worth.
• You are deciding between renovating and moving.
• Homes on your street have been selling and you want to know what that means for you.
• It has simply been a few years since anyone looked properly.

What factors affect a home's value?

Some of these you control, and some you do not. A good valuation accounts for both.

• Location — neighbourhood, school zone, commute, and street-level detail like traffic noise or a corner lot.
• Size and layout — living area, bed and bath count, and whether the floor plan suits how buyers live now.
• Condition and age — roof, HVAC, plumbing, electrical and windows. Buyers price deferred maintenance harshly because they must fund it after closing.
• Updates — kitchens and bathrooms move the number most. Highly personal renovations rarely return what they cost.
• Lot and outdoor space — size, usability, pool, and view.
• Recent comparable sales — what similar nearby homes actually closed at, which is the backbone of any credible valuation.
• Current competition — how many similar homes are on the market alongside yours right now.
• Market conditions — interest rates, inventory levels and seasonality.
• Carrying costs — HOA fees, insurance and property taxes, which affect what buyers can afford to offer.

Should you sell before buying another home?

There is no universal answer, and anyone who gives you one without asking about your finances is guessing. The trade-off is real:

• Selling first means you know your exact proceeds, you shop with a stronger offer, and you carry no risk of two mortgages. The cost is that you may need interim housing or a rent-back arrangement.
• Buying first means you move once and never scramble for somewhere to live. The cost is that it requires bridge financing or the ability to carry both properties, and it usually weakens your position as a seller because you are working to a deadline.

What tips the decision is usually your equity, your lender's appetite, and how quickly homes like yours are currently selling. All three are things we can look at together — which is exactly why "sell and buy" is one of the options in the assessment above.