In the current real estate landscape, home prices have experienced a moderation over the past year. However, numerous homeowners still possess a significant amount of equity. But what exactly is equity? To put it simply, equity represents the disparity between your home's market value and the outstanding balance on your mortgage. According to the National Association of Realtors (NAR), equity accumulates through both price appreciation and mortgage payments.
Leveraging Your Equity to Achieve Your Goals
Over the years, the equity you build can serve as a valuable asset when you decide to sell your current property and transition into a new home. If you find yourself in need of additional space, it might be time to upgrade to a larger home. Conversely, if you feel you have an excess of space, downsizing to a smaller property could be a suitable choice. Regardless of your situation, your equity can prove to be a powerful tool in facilitating your move within today's real estate market. It could potentially cover some, if not all, of the required down payment for your next home.
You might be pleasantly surprised by the amount of equity you have accumulated. A recent survey conducted by Realtor.com revealed that many homeowners currently estimate possessing a substantial amount of equity.
Supporting data from CoreLogic further reinforces homeowners' positive sentiments regarding the equity they have likely accrued over time. Selma Hepp, Chief Economist for CoreLogic, explains that despite certain regions experiencing a decline in home prices toward the end of 2022, the average homeowner in the United States still possesses approximately $270,000 in equity. This amount reflects an increase of nearly $90,000 compared to the equity held at the beginning of the pandemic.
The Importance of a Competent Real Estate Agent
If you aim to leverage your equity to enhance your purchasing power in the present market, having a trusted real estate agent by your side can make a significant difference.
A skilled real estate professional can provide you with an accurate assessment of your home's value, offering you a clearer understanding of the equity you likely possess. As noted in a recent Bankrate article, enlisting the services of an experienced agent enables you to obtain a realistic estimate of home prices in your area and determine an appropriate listing price for your current property. Armed with this information, you can calculate the amount of equity at your disposal and gauge the potential net proceeds. This knowledge allows you to allocate the funds towards the down payment and closing costs of your new home.
Achieving a solid comprehension of your equity is crucial when making decisions about buying or selling a home. A competent agent can help you navigate the often intricate process of selling your house, ensuring a smooth transaction.
In conclusion, homeowners are fortunate to possess significant equity, and you might be one of them. When it comes to estimating your equity and strategizing its utilization for your next home purchase, Anthony Spitaleri and his team are here to assist you. With their extensive knowledge and experience in the real estate industry, they can accurately assess the amount of equity you have accumulated and devise a plan to maximize its potential in your home-buying journey. Reach out to us, and together, we can estimate the value of your equity and strategize how you can leverage it towards acquiring your next dream home.
