Equity

Equity Enhances Selling Prospects for Homeowners

For homeowners contemplating selling their house, the decision might be challenging due to concerns about potential higher mortgage rates for their next home. In such cases, gaining a comprehensive understanding of their equity can provide the necessary comfort to proceed with confidence.

Equity: Definition and Functionality

Equity represents the present worth of your home, calculated by deducting your outstanding loan balance. Notably, the value of equity has been increasing at an unexpectedly rapid pace in recent times.

During the past few years, there has been a significant surge in home prices, resulting in a substantial and swift boost to your equity. Although the market is transitioning towards normalization, the supply of available homes for sale still falls short of the demand from potential buyers. As a result, prices continue to rise today.

The Benefits of Equity in Today’s Market

In the face of current affordability challenges, equity can significantly impact your financial situation when you decide to move. Here’s why. According to ATTOM and Census data, a significant majority (68.7%) of homeowners have either fully paid off their mortgages or possess a minimum of 50% equity.

Approximately 70% of homeowners currently possess a significant amount of equity, enabling them to leverage it for their next purchase.

By selling your house, you can utilize this equity, potentially covering a substantial portion, if not all, of your future down payment. It may even provide you with the opportunity to make a larger down payment on your next home, reducing the need for financing. Additionally, if you have resided in your current residence for an extended period, it is possible that you have accumulated enough equity to facilitate a cash payment. In such a scenario, you can avoid borrowing altogether and circumvent concerns regarding prevailing mortgage rates.

Determining Your Equity:

For accurate assessment, it is recommended to consult a reliable real estate agent to obtain a Professional Equity Assessment Report (PEAR).

If you’re considering a move, the accumulated equity can significantly influence your decision. Let’s connect to determine the actual value of your current property and explore opportunities for your next purchase.

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About Diane Casey Luong

As an award-winning, full-time Realtor®, Diane is a proven leader among Worcester MA real estate agents, fully committed to you and your property goals.

As a requested speaker, Diane educates audiences on topics such as the purchasing foreclosure properties, nuances of the real estate market from neighborhood to neighborhood, and understanding the ever-changing trends in the real estate industry.

A graduate of the Massachusetts Academy of Real Estate, Diane has brought her expertise in real estate to Worcester, MA, and its surrounding towns.