Wednesday, 16 November 2011

Home sweet home...what's it worth?

Countless Canadians diligently check the stock market every day - on TV, online and in print - but fail to that stock of an even weightier investment: their own home. Are you among the 95% of Canadian homeowners who are unaware of the market value of their homes?
A Comparative Market Analysis (CMA) provided by a real estate professional can bring you up to speed. As the name suggests, a CMA compares your house with similar ones on the market in your neighbourhood during a specified time period. This data, combined with the value of upgrades, will give you an accurate picture of your homes worth. Remember, however, that your personalized CMA is a "snapshot" captured in time, while the real estate market constantly fluctuates; therefore, it's a good idea to obtain a new one each year.
The CMA is the only market-based means of measuring value. When buying, selling or refinancing, a CMA is essential in setting prive and in choosing advantageous timing. Still, there are numerous other reasons to run a CMA - to obtain a realistic picture of your net worth, to provide adequate replacement insurance, or to leverage your equity.