If you're thinking of selling your home, it's likely there has been a significant change in your life circumstances. While factors such as current mortgage rates play a crucial role in your next
Homeowners Have Substantial Equity To Leverage
Dated: May 17 2023
Despite the moderation of home prices in the past year, numerous homeowners continue to possess a substantial amount of equity. But what exactly is equity? Put simply, equity refers to the difference between the current market value of your home and the outstanding balance on your mortgage. The National Association of Realtors (NAR) elaborates on how your equity expands as time progresses:
“Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
How Your Equity Can Help You Achieve Your Goals
The accumulated equity you acquire over time can serve as a valuable asset when you decide to sell your current house and purchase your next one. If you no longer have the space you need, it might be time to move into a larger home. On the other hand, if you have excess space and need something smaller, downsizing could be a suitable option. In any case, your equity can be a powerful tool you can use to help you make a move in today's market. That’s because it may be some (if not all) of what you need for your down payment on your next home.
You might be surprised by the amount of equity you've built up. A recent survey conducted by Realtor.com reveals that many homeowners today estimate they have accumulated a significant level of equity.
The latest data from CoreLogic helps solidify why homeowners are feeling so good about the equity they’ve likely gained over time. As Selma Hepp, Chief Economist for CoreLogic, says:
“While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”
How a Skilled Real Estate Agent Can Help
If you’re looking to leverage your equity to boost your buying power in today’s market, having a trusted agent by your side makes a difference.
A real estate professional can help you better understand the value of your home, so you’ll get a clearer picture of how much equity you likely have. As a recent article from Bankrate says:
“Hiring a skilled real estate agent can give you a realistic estimate of home prices in your area and how to price your current home. Using that figure, you can calculate how much equity you have and what your net proceeds will look like, so you can apply that money toward the down payment and closing costs of your new home.”
Having a solid understanding of your equity is quite important when you're thinking about buying or selling your home. A skilled agent can help guide you through the often-complicated process of selling your house and make sure everything goes smoothly.
Here's the bottom line: lots of homeowners have a ton of equity these days, and you might be one of them. Let's chat and figure out how much equity you've got and how you can use it to buy your next home.
Steve has been a realtor in the Metro Atlanta area for several years. Before joining eXp Realty he was initially with Keller Williams for almost four years; consistently performing as one of the top 1....
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