Are you thinking about selling your home? Before selling, it’s essential to know how much equity you currently have. Given the significant rise in home prices over the past few years, many people likely have more equity than they realize.
If you’re planning to sell your current home and purchase a new one, here are some important factors to consider.
Home Equity: What Is It, and How Much Do You Have?
Home equity is the difference between the value of your home and the remaining balance on your mortgage. For example, if your home is valued at $400,000 and you still owe $200,000 on your mortgage, your equity is $200,000.
According to recent U.S. Census data and ATTOM reports, Americans currently hold substantial equity. In fact, more than two out of three homeowners either have completely paid off their mortgages (represented by the green section in the chart below) or have at least 50% equity in their homes (represented by the blue section in the chart below).
Today, more homeowners are realizing significant profits when selling their homes. If you have this amount of equity, it can serve as a strong asset when purchasing your next home.
What to Do Next
If you’re planning to sell your home, it’s important to know how much equity you have and how it could impact your sale and potential profit. To get the clearest picture, it’s advisable to consult with a real estate professional and also speak with a tax expert or financial advisor. A team of experts will understand your situation and guide you on the best path forward.
Conclusion
Given the rise in home prices, it’s likely that your equity has increased as well. Reach out to a local real estate expert to determine how much equity you currently have in your home and move forward with confidence when selling your property.
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