How to Track Your Home Value (And Why It Matters)

Your home is probably your biggest asset. Do you know what it’s actually worth? Understanding and tracking your home’s value helps with insurance coverage, refinancing decisions, and overall financial planning.

Why Track Home Value?

Insurance Coverage

Your homeowner’s insurance should cover the cost to rebuild. If your home’s value has increased significantly, you might be underinsured.

Refinancing Decisions

Home equity affects your refinancing options. Higher value = more equity = better rates and terms.

Home Equity Line of Credit (HELOC)

Banks base HELOC limits on your equity. Knowing your value helps you understand your borrowing power.

Financial Planning

Your home equity is part of your net worth. Tracking it helps with overall financial planning and retirement calculations.

Selling Timing

Understanding market trends helps you decide when to sell—or whether to stay and invest in improvements.

How to Estimate Your Home Value

Online Estimators

Zillow Zestimate

• Updates regularly
• Uses algorithm based on comparable sales
• Accuracy varies by market

Redfin Estimate

• Similar to Zillow
• Often slightly different numbers
• Good for comparison

Realtor.com

• Uses multiple data sources
• Includes local market trends

Pro tip: Check multiple sources and average them for a rough estimate.

Professional Appraisal

For accurate value:

• Costs $300-$500 typically
• Required for refinancing
• Considers condition, improvements, market
• Valid for limited time (markets change)

Comparative Market Analysis (CMA)

Real estate agents provide these free:

• Based on recent comparable sales
• Considers your home’s specific features
• Useful when considering selling
• Less formal than appraisal

Factors Affecting Value

What Increases Value

• Market conditions — Rising market lifts all homes
• Renovations — Kitchen, bathrooms, primary suite
• Energy efficiency — New windows, HVAC, insulation
• Curb appeal — Landscaping, paint, roof
• Additional square footage — Finished basement, additions
• Location improvements — New schools, transit, businesses nearby

What Decreases Value

• Deferred maintenance — Neglected repairs compound
• Dated features — Old kitchens and baths
• Poor renovations — DIY disasters
• Neighborhood changes — New commercial, increased traffic
• Market conditions — Downturns affect everyone

Neutral/Personal Preference

• Pool (some buyers love, others don’t want maintenance)
• Unique colors/finishes
• Highly personalized modifications

Tracking Improvements

Document all improvements you make:

1. Date of improvement
2. Cost (materials and labor)
3. Before/after photos
4. Receipts and permits
5. Contractor information

This documentation helps with:

• Insurance claims
• Tax basis when selling
• Demonstrating value to buyers

Apps like Dib can track your home improvements alongside your inventory, keeping everything organized.

When to Reassess

Check your home value:

• Annually — Quick check via online estimators
• After major renovations — Kitchen, bath, addition
• Before refinancing — Get professional appraisal
• Before selling — CMA from agent
• Significant market changes — Up or down
• For insurance review — Ensure adequate coverage

Using Value Information

For Insurance

• Compare coverage to estimated rebuild cost
• Update coverage if significantly underinsured
• Review annually at renewal

For Refinancing

• Calculate current equity (value minus mortgage balance)
• Compare to refinance requirements (usually need 20% equity)
• Consider if refinancing makes financial sense

For Financial Planning

• Include home equity in net worth calculations
• Consider as part of retirement planning
• Don’t over-rely on home value (it’s not liquid)

Track Your Investment

Your home should be part of your overall financial picture. To track effectively:

1. Set calendar reminders for annual value checks
2. Document all improvements
3. Keep up with maintenance (affects value)
4. Stay informed about local market trends
5. Review insurance coverage regularly

Dib includes home value tracking alongside inventory and maintenance—giving you a complete picture of your home’s financial status.

The Bottom Line

Knowing your home’s value isn’t just curiosity—it’s good financial planning. Check annually, document improvements, and make sure your insurance keeps pace with your home’s worth.