Homeowner's Annual Financial Checkup in Fort Wayne
Homeownership · From Moving Fort Wayne
Homeowner's Annual Financial Checkup in Fort Wayne
You go to the doctor once a year. You see the dentist every six months. You probably meet with a financial advisor a couple of times a year. So here is the question Brad Noll wants Fort Wayne homeowners to sit with: how often do you actually check in on your home?
For most people, the answer is almost never. And that is a problem, because your home is likely the largest asset you own. This post walks through the homeowner's annual financial checkup, a simple, once-a-year review that tells you what your home is worth, how much equity you have, and whether your mortgage, insurance, and taxes still fit your life.
It is written for Fort Wayne homeowners, buyers, and sellers who want to make confident, informed decisions, whether or not a move is on the horizon. As Brad Noll of The Noll Team puts it, "Your home isn't just where you live. It is a financial asset, and it needs to be treated that way."
Key Takeaways
- Get a home inspection every two to three years to catch storm damage, water intrusion, or mold before it becomes expensive.
- There are four opinions of value: your assessed value, the online algorithms, a real estate market analysis, and the appraised value.
- Online portals can disagree wildly. Brad found nearly a $150,000 gap between the low and high estimates on his own home.
- Most homeowners know what they owe but not how much equity they have. Review that number every year.
- Review your mortgage, insurance, and property tax exemptions annually, and keep a maintenance reserve fund for major systems.
- The financial checkup is also a lifestyle checkup: does your home still fit where your life is headed?
“Your home isn't just where you live. It is a financial asset, and it needs to be treated that way.”
Brad Noll
How to Know What Your Home Is Really Worth
Ask yourself honestly: how do you know what your home is worth today? Do you open an app and trust an algorithm? Do you glance at your property tax assessment once a year and call it good?
Brad Noll frames it around four opinions of value, and understanding all four is the foundation of the checkup.
The Four Opinions of Value
- Assessed value: what the city and county believe your home is worth. This is what your real estate taxes are based on, and it is often not what your home would actually sell for.
- The algorithms: the estimates generated by the online real estate portals. Convenient, but far from precise.
- Market value: what a buyer would actually be willing to pay. This is the space The Noll Team works in most often, through a market analysis.
- Appraised value: the figure a licensed appraiser provides, usually ordered by a lender during a sale or refinance.
That fourth number matters more than people realize. As Brad notes, if you are in a transaction right now, "there's a 90% chance you're going to need an appraisal." Cash deals do not require one, but he still recommends it so you know exactly what you are getting.
Why the Online Estimates Disagree
Before recording, Brad looked up his own home across the portals he uses and compared the low and high estimates. The difference, or what he calls the delta, was almost $150,000. "There's almost a $150,000 discrepancy on these portals," he said, landing on $149,000 to be exact.
The takeaway is not that the portals are useless. It is that supply and demand drive prices, not algorithms. If you want an accurate number, you need someone with access to real market data. The Noll Team offers a free market analysis every year to clients and past clients, so this is one call away.
Understanding and Using Your Home Equity
"Most homeowners know what they owe, but very few know how much equity they have," Brad says. The math is straightforward: start with a current market analysis, subtract what you owe on any first and second mortgages, and subtract expected selling costs. What is left is your equity.
Why it matters more now: Fort Wayne historically averaged one to four percent appreciation for two decades, then saw stretches of twelve, fourteen, even sixteen percent in a single year. Brad is clear that pace is "never sustainable," because affordability eventually catches up. Knowing your real equity keeps you grounded in reality rather than guesswork.
Equity as a Disciplined Tool
Here Brad offers a deliberately cautious take. He describes himself as financially conservative, dividing income into buckets, and he is emphatic: "Do not use your home as an ATM machine." Vacations and consumer purchases are not good reasons to tap equity.
Used strategically, though, a home equity line of credit can be a tool. Brad and his family have used equity as a down payment on an investment property and paid it back within a couple of years. Because mortgage interest is often tax deductible (check with your tax professional), borrowing against a home for the right purpose can beat a standard loan. Renovations, college, weddings, or an emergency backstop if you lose a job can all qualify, but only for someone who is genuinely disciplined.
Reviewing Your Mortgage, Insurance, and Property Taxes
The checkup is not only about value and equity. Three recurring reviews deserve a spot on your annual calendar.
Mortgage Review
Brad has lived in his home for 18 or 19 years and refinanced four or five times, cycling through an interest-only loan, an adjustable rate mortgage, a 15-year, and a 30-year. His point is not that everyone should refinance, but that "it's really to understand how your mortgage fits into your lifestyle."
One practical tip: making one extra payment a year, 13 instead of 12, can shave roughly nine years off a typical loan. As Brad says, "compounding interest is the eighth wonder of the world."
Insurance Review
Are you protected properly? After a renovation, Brad made sure the added square footage was reflected in his coverage. He also flags water backup coverage as a big one for basements. Many policies default to a basic $10,000 limit, and "$10,000 goes really quick when your basement floods."
His own basement flooded, ruining carpet, trim, and furniture. He was grateful his agent had encouraged $25,000 in water backup coverage. You might have insurance, he warns, but not the right insurance.
Property Taxes and Indiana Exemptions
Indiana homeowners should confirm their exemptions every year. Brad points to the homestead and mortgage exemptions, plus possible senior or VA exemptions. Under Indiana's property tax cap, an owner-occupied primary residence with a homestead exemption is capped near one percent of assessed value, versus up to two percent for non-owner-occupied and three percent for commercial.
If you buy a former investment property taxed at the higher rate, getting your exemptions in place is one of the easiest ways to save. Double-check before December 31 each year.
Does Your Home Still Fit Your Life?
The final piece is less about numbers and more about direction. "We believe people move because they make a change in their lifestyle," Brad says. Marriage, divorce, new babies, empty nesting, job changes, aging parents. Only about five percent of the team's work is the dream-home upgrade.
So look ahead three to five years. Are career changes, retirement, college, or generational living coming? Brad describes a current listing with an ensuite kitchenette and full bath, ideal for adult children or aging parents moving in. Equity can fund the renovations that make a home work for another chapter.
And keep a maintenance reserve fund for the unglamorous essentials: roof, heating and cooling, water heater, appliances, and exterior upkeep. As Brad notes, "Homeowners that make the best decisions, they do not make them overnight. They plan and they proceed with caution."
Frequently Asked Questions
How often should I get a home inspection?
Brad recommends a home inspection every two to three years, with three being a solid target. Between inspections it is easy to miss storm damage, a loose spot letting water in, or mold quietly growing. A regular check keeps small issues from becoming expensive ones.
How do I find out how much equity I have?
Start with a current market analysis of your home, then subtract what you owe on any first and second mortgages, plus estimated closing costs. What remains is your equity. Brad recommends reviewing this number every single year.
Should I use my home equity to make purchases?
Only with real discipline. Brad's rule is to avoid using your home as an ATM for vacations or consumer buys, and to borrow against equity mainly for assets that appreciate or for strategic needs like renovations, investment down payments, or an emergency backstop. Always check with your tax professional first.
What property tax exemptions do Indiana homeowners need?
The most common are the homestead and mortgage exemptions, with senior or VA exemptions available to some. For a primary residence with a homestead exemption, Indiana's cap keeps property taxes near one percent of assessed value. Confirm your exemptions are in place before December 31 each year.
▶ Listen to the full episode
The Homeowner's Annual Financial Checkup: 7 Questions Every Fort Wayne Homeowner Should Ask, on Moving Fort Wayne.
Work with the Noll Team
Ready to make your move?
Since 2003, Noll Team Real Estate has been helping people in the Fort Wayne area find the freedom to live the lifestyle they want. Tell us where you are headed and we will build the plan around your life.