What your home is worth — and why it matters

If you're like most, you keep a close eye on your checking account balance. If you have investment accounts, you no doubt check those all the time, too. But the value of one of your biggest assets — your home — may not be so clear.

Since the 2008 real estate downturn, the market has improved significantly and lifted home values across the nation. If you haven't checked your home's value in a while, it might surprise you what it's worth. Here are some of the biggest reasons why knowing that figure is so important.

Selling your home

Since it's your biggest financial asset, it's important you get the most for your home. When you know what your property is worth, you can be confident in setting a sale price. Pinpointing your home value can also help you decide whether to put it on the market. A real estate agent can prepare a market analysis of your home to determine it's a price comparable to others in the neighborhood and surrounding area.

Home upgrades and repairs

Knowing your home's value can also help you decide if upgrades or repairs are in order. You want to be sure these costs will pay off. In general, it's a good idea to make improvements that will increase your asking price.

Projects that make the most financial impact are kitchen and bathroom remodels and roof and window upgrades. If a return on your investment is important, ensure your upgrades match the other homes in the neighborhood. You wouldn't want to add a lavish pool to a house in a modest neighborhood. Some upgrades may be just for the enjoyment or comfort of your family. Just understand you may not gain any financial return from those when you sell.

Consolidating debt and paying for major expenses

Tapping into your home equity — the difference between what it's worth and what you still owe — can give you more financial flexibility.

A home equity loan or line of credit uses that equity as collateral. You can use them to pay down high-interest credit card debt or make big purchases, such as college tuition, medical expenses or home improvements. You could also consider a cash-out refinance, which may lower your interest rate and monthly payment, as well as provide the cash you need. Just remember you are still borrowing money. There are risks involved when doing so against the value of your home.

When you know the value of your home, you'll see how much equity you have. For instance, if your house is worth $279,000 with a mortgage debt of $100,000, your total equity is $179,000.

Property tax bill

Your property taxes directly relate to the tax-assessed value of your home. If you think your county has appraised your property value too high, you can appeal your tax bill. Use what you know about your home's real value compared to the tax value of similar homes in the area. Keep in mind the tax-appraised value may differ from the market or resale value.

Helpful online tools for home market value

To have a rough idea of your home's market value, try some of the online tools or websites that can offer quick, automated estimates. But home value tools can't look at everything. Take them for what they are — just estimates.

The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank does not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates. All information provided is subject to change without notice.