What Every Homeowner Should Know About Home Equity in 2024
Are you considering selling your home? Understanding your home equity is crucial when determining how much you can afford for your next move. With home prices having significantly increased in recent years, many homeowners have more equity than they might realize.
If you're ready to sell and make the most of your investment, here's a closer look at how your home equity can help you leverage the best opportunities in today’s real estate market.
Home Equity: What Is It and How Much Do You Have?
Home equity refers to the difference between your home's current market value and the remaining balance on your mortgage. For instance, if your home is valued at $400,000 and you owe $200,000, your equity stands at $200,000.
Recent data from Census and ATTOM indicates that Americans are sitting on substantial home equity. In fact, over two-thirds of homeowners either own their homes outright (depicted in green in the chart below) or hold at least 50% equity (shown in blue).
Understanding your home equity is crucial when considering selling or refinancing. It not only represents your ownership stake but also provides an opportunity to access funds for future investments or expenses.
Today, more homeowners are experiencing significant returns on their homeownership investments when they sell. With rising home equity, many are finding that they have more financial leverage than they expected.
If you have built up substantial equity in your home, it can be a powerful asset to fuel your next move. Whether you’re upgrading, downsizing, or relocating, your home equity provides the flexibility and financial strength to make your next real estate investment easier and more affordable.
What you may want to do next
If you’re considering selling your house, it’s essential to know how much home equity you’ve built and what that means for your potential earnings. Home equity plays a critical role in determining how much you can profit from your sale and how it can fuel your next move.
To get a clear picture of your home equity and its impact on your sale, work closely with a real estate agent who can provide insights on current market conditions. It’s also wise to consult a tax professional or financial advisor to understand the tax implications and how your earnings will affect your overall financial strategy.
By assembling a team of experts, you’ll have the guidance needed to make informed decisions about your home sale and future plans.
Bottom Line:
With home prices on the rise, your home equity has likely increased as well. Understanding how much equity you have is key to making informed decisions about selling your property.
Let’s connect today to assess your equity and ensure you can move forward confidently when you’re ready to sell. By knowing your financial position, you’ll be better prepared to maximize your return and take the next step in your real estate journey.
