As a seasoned real estate professional, I've seen how becoming a homeowner can have long-term financial benefits. One such benefit is the opportunity to build equity in your property over time. With equity, you can tap into the value of your home by selling it or taking out a home equity loan to fund various expenses. However, it's important to understand what equity is and how it grows. According to Bankrate, home equity is the value of your home that you own outright, which is the appraised value of your property minus any outstanding mortgage and loan balances. In this post, we'll dive deeper into the concept of home equity and how it can be an asset for homeowners.
If you’ve owned your home for a while, you’ve likely built up some equity – and you may not even realize how much. Based on data from the U.S. Census Bureau and ATTOM, the majority of Americans have a substantial amount of equity right now (see graph below):
And having such large amounts of equity is a benefit to homeowners in more ways than one. Rick Sharga, Executive Vice President of Market Intelligence at ATTOM, explains:
“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”
Over time, your home equity grows. In addition to providing financial stability while you own your house, when you’re ready to sell it, that money could go a long way toward paying for your next home.
In closing, I want to emphasize the importance of understanding your home equity and how it can benefit you as a home seller. At Teri Pacitto and her team, we work closely with our clients to help them navigate the complexities of selling their homes and leveraging their equity to achieve their future goals.
Over time, your home equity grows, and it can provide a significant financial cushion for you when you decide to sell. This is especially true if you’re looking to purchase your next home, as the money from your home equity can go a long way toward funding your down payment or other expenses.
If you’re considering selling your home, I encourage you to take the time to learn more about your home equity and how it can work for you. By connecting with our team at Teri Pacitto, we can help you assess your equity, understand your options, and make informed decisions about your next move.
Don’t let your equity go to waste – contact us today and start planning your future with confidence.
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