What Every Homeowner Should Know About Their Equity

Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. With rising home prices over the past few years, most people have much more equity than they realize.

Here's a deeper look at what you need to know if you're ready to cash in on your investment and put your equity toward your next home.

Home Equity: What Is It and How Much Do You Have?

Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.

Recent data from the Census and ATTOM shows Americans have significant equity right now. More than two out of three homeowners have either completely paid off their mortgages or have at least 50% equity in their homes:

• 39.3% own their home free and clear.
• 29.9% have mortgages with over 50% equity.
• 30.8% have mortgages with less than 50% equity.

Today, more homeowners are getting a larger return on their homeownership investments when they sell. If you have that much equity, it can be a powerful force to fuel your next move.

What You Should Do Next

If you’re thinking about selling your house, it’s important to know how much equity you have and what it means for your home sale and potential earnings. Here’s how you can get started:

1. Consult with Your Agent: An experienced real estate agent can help you determine your home's current market value and calculate your equity.

2. Talk to a Tax Professional or Financial Advisor: They can provide insights into the tax implications of selling your home and guide you on how to maximize your financial benefits.

3. Evaluate Your Options: Decide whether selling now is the right choice for you or if you should wait for a more favorable market condition.

4. Plan Your Next Steps: Consider how you will use the equity from your current home. Are you looking to buy a bigger home, downsize, or perhaps invest in a rental property?

Bottom Line

Home prices have gone up, which means your equity probably has too. Let’s connect so you can find out how much you have in your home and move forward confidently when you sell.

Contact us today to learn more about your home's equity and explore your options for selling and buying in today's market.