UNLOCKING EQUITY: Game-Changer for Homeowners Considering a Sale.

Dated: August 16 2023

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Over 70% of existing homeowners are not living in their ideal home. For some homeowners, their family has outgrown the home they are living in right now and need a bigger one, for some homeowners the home they are living in right now is too big and would like to downsize. 

In both cases, the homeowners are questioning if selling right now is a smart decision considering the high-interest rate they would have to take on their new mortgage. Are you part of these groups? Understanding your equity may be exactly what you need to help you make the right decision a lot easier. 

 

What Equity is and How It Works?

 

Equity is the current value of your home minus what you owe on the loan. And recently, that equity has been growing faster than you may expect.

 

In the past couple of years, home prices have seen a remarkable surge, greatly enhancing your equity. Although the market is gradually stabilizing, a discrepancy between available homes for sale and eager buyers persists.  This strong demand is what is keeping home prices high and, in some areas, ascending.

 

How Equity Benefits You in Today’s Market?

 

Considering today’s affordability challenge your equity can be a game changer when you move. Here is why: Based on data from ATOM and Census, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (see chart below)

 

Chart Home Equity In America 

That means roughly 70% have a tremendous amount of equity right now.

 

Once you sell your house, your equity becomes a valuable resource for your next purchase. This could potentially cover a significant portion, if not all, of your next down payment. It might even grant you the luxury of making a substantially larger down payment on your next home, reducing the need for extensive financing. Especially if you’ve enjoyed years in your current home, you might find yourself sitting on a substantial equity reserve, potentially allowing you to make a full cash payment. In that scenario, you’d effortlessly sidestep the need for any borrowing, thus eliminating concerns about today’s fluctuating mortgage rates. 

 

 How To Find Out How Much Equity You Have

 

The best way to learn how much equity you’ve gained is to CONTACT US and we will create a Professional Equity Assessment Report for you. A Professional Equity Assessment Report is a custom evaluation of your home’s cash value. 

 

By knowing what you currently owe on your mortgage and estimating the value of your home, we can determine your home’s approximate equity. 

 

We can take it a step further and do an analysis of the cost of upgrading and see if it makes financial sense to upgrade in today's market. This is a powerful tool to help you make confident decisions in your home selling process.

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Camelia Pana

Meet Camelia Pana, a seasoned real estate Broker Associate with United Realty Group in Fort Lauderdale, FL with over 20 years of experience in the industry. Camelia specializes in the residential real....

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