For Homeowners Looking To Sell, Equity Is A Game Changer
Are you a homeowner that is deciding whether or not to sell your house right now? If you are torn on the decision, that may be due to today’s high mortgage rates. If that the biggest factor holding you back, understanding your equity may be exactly what you need to help make your final decision.
What is Equity and How Does It Work?
Equity is the current value of your home minus what you owe on the loan. Your equity may be growing faster than you realize.
Throughout the past few years, home prices have risen dramatically, and this has given your equity a big boost. While the market has started to normalize, there is still an imbalance between the number of homes for sale and the number of buyers seeking to make a purchase. This imbalance is due to the fact that homes are in such high demand that prices are rising. Rob Barker, CEO of ATTOM, a property data provider, says:
“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”
How Equity Benefits You in Today’s Market
With today’s housing affordability challenges, that equity can be a game changer when you move. The graph below helps to illustrate way. Based on data from ATTOM and the Census, nearly two-thirds (68.7% to be exact) of homeowners have at least 50% equity or have fully paid off their mortgages.
What this means is that roughly 70% of homeowners have a tremendous amount of equity right now.
Once you sell your home, you can use your equity to assist with your next purchase. It could be some, if not all, of what you will need for your down payment. It may even be enough to allow you to put down a larger sum for your down payment, which means you won’t have to finance quite as much. Furthermore, if you have been in your current house for multiple years, you may have even built up enough equity to fully pay off your new home. If that’s true, then you won’t even need to be concerned about today’s mortgage rates.
The Bottom Line
If you are interested in learning how much equity you have, contact Dianne Anderson today. As a trusted professional, Dianne can help prepare a Professional Equity Assessment Report (PEAR) for you. Contact Dianne Anderson today to get started on your next move!