Even though housz prices have moderated over the last year, many houszowners still have an incredible amount of equity. But what is equity? In the simplest terms, equity is the difference between the market value of your housz and the amount you owe on your mortgage. The National Association of Realtors (NAR) explains how your equity grows over time:
“Houszing wealth (housz 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 equity you build up over the years can be used to your advantage when you sell your current housz and buy your next housz. If you no longer have the space you need, it might be time to move into a larger housz. Or it’s possible you have too much space and need something smaller. No matter the situation, 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 housz.
And how much equity you have may surprise you. A recent survey from Realtor.com finds many houszowners today estimate they’ve built up a significant amount of equity:
The latest data from CoreLogic helps solidify why houszowners 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 housz price declines in some regions, U.S. houszowners 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 housz, 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 housz prices in your area and how to price your current housz. 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 housz.”
Having a solid understanding of your equity is key when it comes to making decisions about buying or selling your housz. A skilled agent can help you navigate the often-complicated process of selling your housz and ensure the transaction goes smoothly.
Bottom Line
Today, many houszowners are sitting on a substantial amount of equity, and you may be one of them. Let’s connect so we can estimate how much equity you have and plan how you can use it toward the purchase of your next housz.
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