Thinking about selling your home? Understanding your home equity is crucial for planning your next move. Given the significant rise in home prices over the past few years, many homeowners have more equity than they realize.

Here’s what you need to know about leveraging your equity when selling your home and how it can impact your future home purchase.

Understanding Home Equity

Home equity is the difference between your home’s market value and the remaining balance on your mortgage. For instance, if your home is valued at $400,000 and you owe $200,000 on your mortgage, your equity is $200,000.

Recent data from the Census and ATTOM highlights that Americans currently have substantial equity. Over two-thirds of homeowners either fully own their homes (represented in green in the chart) or have at least 50% equity (represented in blue):

With such significant equity, many homeowners are seeing great returns on their investments when they sell. This equity can be a powerful asset to fuel your next home purchase.

Steps to Take Next

If you’re considering selling, it’s essential to determine how much equity you have and understand its implications for your sale and future earnings. Working with a real estate agent is the best way to get an accurate assessment of your equity. Additionally, consulting a tax professional or financial advisor can help you navigate your specific situation.

Bottom Line

With the increase in home prices, your equity has likely grown. Let’s connect to assess how much equity you have in your home and plan your next steps with confidence.