Leave a Message

Thank you for your message. We will be in touch with you shortly.

Unlocking the Power of Home Equity: Your Path to a New Home

home equity

Unlocking the Power of Home Equity: Your Path to a New Home

Despite the recent moderation in home prices, numerous homeowners continue to possess a substantial amount of equity. But what exactly does equity mean? In its simplest form, equity refers to the disparity between the current market value of your home and the outstanding amount of your mortgage. The National Association of Realtors (NAR) elucidates how equity accumulates over time:

"The growth of housing wealth (home equity or net worth) is fostered by price appreciation and mortgage repayment."

Utilizing Your Equity to Accomplish Your Objectives

The equity you accumulate throughout the years can serve as a valuable asset when you decide to sell your current house and purchase a new one. If your current home no longer meets your spatial requirements, it may be an opportune moment to transition to a larger property. Conversely, you might find yourself in a situation where you have excessive space and require something smaller. Regardless of the circumstances, your equity can be a potent tool that empowers you to navigate today's real estate market. This is because it can potentially cover a significant portion, if not all, of your down payment for your next home.

And how much equity you have may surprise you. A recent survey from Realtor.com finds many homeowners today estimate they’ve built up a significant amount of equity:

The latest data from CoreLogic helps solidify why homeowners are feeling so good about the equity they’ve likely gained over time. As Selma Hepp, Chief Economist for CoreLogic, says:

“While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.”

How a Skilled Real Estate Agent Can Help

If you’re looking to leverage your equity to boost your buying power in today’s market, having a trusted agent by your side makes a difference.

A real estate professional can help you better understand the value of your home, so you’ll get a clearer picture of how much equity you likely have. As a recent article from Bankrate says:

“Hiring a skilled real estate agent can give you a realistic estimate of home prices in your area and how to price your current home. Using that figure, you can calculate how much equity you have and what your net proceeds will look like, so you can apply that money toward the down payment and closing costs of your new home.” 

Having a solid understanding of your equity is key when it comes to making decisions about buying or selling your home. A skilled agent can help you navigate the often-complicated process of selling your house and ensure the transaction goes smoothly.

Today, many homeowners are sitting on a substantial amount of equity, and you may be one of them. Let’s connect so we can estimate how much equity you have and plan how you can use it toward the purchase of your next home.


Recent Blog Posts

Stay up to date on the latest real estate trends.

home selling strategies

Unlocking Equity: A Key Factor for Selling Your Home in Westlake Village, Thousand Oaks, and The Conejo Valley

How Home Equity and Tenure Play a Crucial Role in Your Decision to Sell

luxury homes

Exploring the Luxury Home Market in Westlake Village and Thousand Oaks: Why Now is the Time to Buy

Discover the Upscale Living Opportunities in Westlake Village and Thousand Oaks as the Million-Dollar Home Market Expands

2024 Housing Trends

Why Off-Market Sales May Not Maximize Your Home's Value: A Client's Story

A Client’s Experience Reveals the Risks

informed decisions for seniors

Elder Abuse Awareness: Protecting Our Vulnerable Seniors on Elder Abuse Awareness Day

Recognizing the Signs, Taking Action, and Ensuring the Safety and Well-being of Our Elderly Population

elder abuse awareness

Protecting Seniors in Real Estate: Raising Awareness and Preventing Elder Abuse

Understanding the Risks and Implementing Safeguards to Protect Elderly Clients in Property Transactions

elder abuse awareness

Safeguarding Seniors in Real Estate: Ensuring Safe and Informed Decisions

Protecting the Emotional and Financial Well-Being of Seniors in Real Estate Transactions

real estate news

Clearing the Confusion: Addressing Misinformation in Real Estate and Understanding the NAR Settlement

How Social Media Misinformation Impacts Real Estate and What You Need to Know About the NAR Settlement

Wildfire Seson

Prepare for Wildfire Season: Secure Your Property with Defensible Space

Deadline Alert: June 1st for Ventura and Los Angeles County Residents - Act Now to Protect Your Home and Community!

Real estate valuation

Navigating Property Valuation: The True Value of Price Per Square Foot

Decoding Real Estate Metrics to Ensure Accurate Property Comparisons

Let’s Talk

You’ve got questions and we can’t wait to answer them.

Follow Us on Instagram