Building equity in your house is one of the biggest financial advantages of homeownership. And right now, homeowners across the country are sitting on record amounts of it. Here’s a look at how that equity could be a game changer for you, and why it’ll flip your perspective from Why would I move right now? to Why wouldn’t I?
Home Equity: What Is It?
Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is valued at $400,000 and you owe $200,000, your equity would be $200,000.
Why Equity Is Such a Big Deal for Homeowners Looking To Sell
Recent data from the Census and ATTOM shows how significant today’s home equity really is. In fact, more than two out of three homeowners have either completely paid off their mortgages or have at least 50% equity in their homes:
That’s a big deal. Two out of three homeowners have at least 50% equity in their homes. To put that into perspective, CoreLogic shows the average homeowner has $311,000 in equity. That kind of net worth can go a long way if you’re trying to make a move.
That’s also part of why the share of all-cash buyers recently reached a new high. According to an annual report from the National Association of Realtors,26% of buyers purchased without a mortgage:
Imagine buying your next house in cash. No mortgage. No monthly payment. No interest rate to worry about. If you want to find out how much equity you have, connect with a real estate agent and request a professional equity assessment report.
Even if you don’t have enough equity to buy all cash, you may still be able to make a larger down payment, which comes with its own benefits.
Bottom Line
Homeowners have an incredible amount of equity today, and that’s why all-cash buyers are on the rise.To see how much equity you have and how it can fuel your next move, connect with an agent.
