Building equity is one of the greatest financial advantages of homeownership. Right now, many homeowners in the U.S. are sitting on record amounts of it. Here’s how that equity could transform your next move and why it might shift your perspective from “Why would I move now?” to “Why wouldn’t I?”
What Is Home Equity?
Home equity is the difference between your home’s market value and the balance left on your mortgage. For instance, if your home is worth $400,000 and you owe $200,000, your equity is $200,000. This equity can be a powerful tool, especially for homeowners looking to make their next move.
Why Equity Matters for Sellers
Recent data from the U.S. Census Bureau and ATTOM Data Solutions reveals that over two-thirds of homeowners have either fully paid off their mortgages or own at least 50% equity in their homes.
On average, homeowners have about $311,000 in equity. With this kind of financial leverage, many sellers are discovering opportunities to buy their next home in cash.
In fact, the National Association of Realtors (NAR) reports that 26% of buyers in a recent study purchased their homes outright, bypassing mortgages entirely.
How Equity Can Simplify Your Next Move
Imagine buying your next home with no mortgage, no monthly payments, and no interest rates to worry about. Even if your equity doesn’t cover the full cost of a new home, it could provide a substantial down payment, reducing your loan amount and monthly payments.
To see how much equity you have and explore your options, connect with a real estate professional for a Professional Equity Assessment Report (PEAR).
Bottom Line
Homeowners today have a significant advantage with record-high equity. If you’re considering a move, this equity could fuel your next purchase and even open the door to a mortgage-free home. Ready to explore your options? Contact me to discover how your equity can empower your next move.
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