Equity Is a Game Changer for Homeowners Looking To Sell

<article class="post-774768 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-774768"><span class="entry-date">August 15, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Equity Is a Game Changer for Homeowners Looking To Sell</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Equity+Is+a+Game+Changer+for+Homeowners+Looking+To+Sell&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fequity-is-a-game-changer-for-homeowners-looking-to-sell%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Equity Is a Game Changer for Homeowners Looking To Sell Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20230815-Equity-is-a-game-changer-for-homeowners-looking-to-sell.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>If you’re a homeowner, you might be torn on whether or not to <a href="https://www.simplifyingthemarket.com/2023/07/31/pricing-your-house-right-still-matters-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sell your house</a> right now. Maybe that’s because you don’t want to take on a higher <a href="https://www.simplifyingthemarket.com/2023/08/03/how-inflation-affects-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rate</a> on your next home. If that’s your <a href="https://www.simplifyingthemarket.com/2023/08/01/sellers-dont-let-these-two-things-hold-you-back/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">biggest hurdle</a>, understanding your equity may be exactly what you need to help you feel more comfortable making your move.</p>
<h4><strong>What Equity Is and How It Works</strong></h4>
<p>Equity is the current value of your home minus what you owe on the loan. And recently, that <a href="https://www.simplifyingthemarket.com/2023/06/16/how-owning-a-home-grows-your-wealth-with-time-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">equity</a> has been growing far faster than you may expect.</p>
<p>Over the last few years, home prices rose dramatically, and that gave your equity a big boost very quickly. While the market has <a href="https://www.simplifyingthemarket.com/2023/07/25/dont-fall-for-the-next-shocking-headlines-about-home-prices/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">started to normalize</a>, there’s still an imbalance between the <a href="https://www.simplifyingthemarket.com/2023/08/08/theres-only-half-the-inventory-of-a-normal-housing-market-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">number of homes</a> available for sale and the <a href="https://www.simplifyingthemarket.com/2023/07/27/homebuyers-are-still-more-active-than-usual/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">number of buyers</a> looking to make a purchase. And it’s because homes are in such high demand that <a href="https://www.simplifyingthemarket.com/2023/07/17/home-prices-are-rebounding/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">prices</a> are back on the rise today. Rob Barber, CEO of ATTOM, a property data provider, <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">explains</a>:</p>
<blockquote><p><em>“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”</em></p></blockquote>
<h4><strong>How Equity Benefits You in Today’s Market</strong></h4>
<p>With today’s <a href="https://www.simplifyingthemarket.com/2023/07/07/the-benefits-of-downsizing-for-homeowners-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">affordability challenges</a>, that equity can be a game changer when you move. Here’s why. Based on data from <a href="https://www.attomdata.com/news/market-trends/home-sales-prices/attom-q2-2023-u-s-home-equity-and-underwater-report/" rel="noopener noreferrer" target="_blank">ATTOM</a> and the <a href="https://data.census.gov/cedsci/all?q=mortgage" rel="noopener noreferrer" target="_blank"><em>Census</em></a>, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (<em>see chart below</em>):<a href="https://www.simplifyingthemarket.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20230814/20230815-Americans-Sitting-On-Tremendous-Equity.png"/></a></p>
<p><strong>That means roughly 70% have a tremendous amount of equity right now. </strong></p>
<p>Once you <a href="https://www.simplifyingthemarket.com/2023/06/26/the-true-cost-of-selling-your-house-on-your-own/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">sell your house</a>, you can use your equity to help with your next purchase. It could be some (if not all) of what you’ll need for your next down payment. It may even be enough to allow you to put a considerably larger down payment on your next home, so you don’t have to finance quite as much. And, if you’ve been in your current house for years, you may have even built up enough equity to pay in all cash. If that’s true for you, you’d be able to avoid borrowing altogether, so you wouldn’t have to worry about today’s <a href="https://www.simplifyingthemarket.com/2023/07/19/explaining-todays-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a>.</p>
<h4><strong>How To Find Out How Much Equity You Have </strong></h4>
<p>The best way to learn how much you have is to reach out to a trusted real estate agent for a Professional Equity Assessment Report (PEAR).</p>
<h3>Bottom Line</h3>
<p>If you’re planning to <a href="https://www.simplifyingthemarket.com/2023/06/13/your-needs-matter-more-than-todays-mortgage-rates/" rel="noopener noreferrer" target="_blank">make a move</a>, the equity you’ve gained can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, connect with a trusted real estate advisor.</p>
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