Despite a recent moderation in home prices, numerous homeowners continue to possess substantial equity. However, what exactly does equity mean? Put simply, it refers to the variance between your home’s market value and the outstanding mortgage balance. The National Association of Realtors (NAR) elucidates the gradual expansion of equity as time progresses:
“Housing wealth (home equity or net worth) gains are built up through price appreciation and by paying off the mortgage.”
How Your Equity Can Help You Achieve Your Goals
The equity you accumulate over time can greatly benefit you when selling your current home and purchasing a new one. Whether you need more space or are looking to downsize, your equity can be a valuable asset in today’s market. It can potentially cover a significant portion, if not all, of your down payment for your next home.
The amount of equity you have in your home may be surprisingly substantial. According to a recent survey conducted by Realtor.com, many homeowners currently believe they have accumulated a noteworthy level of equity.
Recent data from CoreLogic further reinforces the reasons behind homeowners’ positive sentiments regarding their accrued equity. Selma Hepp, Chief Economist for CoreLogic, explains, “Although equity gains were impacted by declines in home prices in certain areas towards the end of 2022, the average U.S. homeowner still retains approximately $270,000 in equity, which is nearly $90,000 more than what they possessed at the start of the pandemic.”
How a Skilled Real Estate Agent Can Help
Having a knowledgeable agent by your side can make a significant difference if you intend to leverage your equity to enhance your purchasing power in today’s real estate market. A trusted real estate professional can provide valuable insights into the value of your home, enabling you to obtain a clearer understanding of your likely equity. As highlighted in a recent Bankrate article,”By hiring a skilled real estate agent, you can obtain an accurate assessment of home prices in your area and determine the appropriate pricing for your current home.
Armed with this information, you can calculate your equity and estimate your net proceeds, which can be utilized towards the down payment and closing costs of your new home.” Understanding your equity is crucial when making decisions regarding buying or selling your property, and a skilled agent can guide you through the often complex process of selling your house while ensuring a smooth transaction.
Bottom Line
In the current market, numerous homeowners possess a considerable amount of equity, and it’s possible that you’re among them. Let’s get in touch to assess your equity and strategize on how you can leverage it towards the acquisition of your future home.
Find out why Kaya Homes is the leader in Long Island Real Estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Baldwin, North Woodmere, Woodsburgh, Hewlett Neck Hewlett Harbor, Bellmore,Wantagh,Merrick and Freeport area. www.kayahomesny.com
Fri, 19 May 2023 01:31:39 +0000
by Mottek Group