Building equity in your home is one of the greatest financial benefits of homeownership. And right now, homeowners across the country are sitting on record amounts of equity. This can be a game-changer, especially if you’re thinking about selling your current house to move into a new one.
So, if you’ve been wondering, “Why would I move right now?” it might be time to flip that perspective to “Why wouldn’t I?” Here’s how your home equity can make all the difference.
What Is Home Equity?
Home equity is the difference between your home’s current market value and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you owe $200,000, you have $200,000 in equity.
This equity isn’t just a number—it’s a powerful tool that can help you achieve financial goals, including upgrading to your next home.
Why Equity Is a Big Deal for Sellers Right Now
Recent data highlights just how significant today’s home equity levels are. According to the Census and ATTOM, two out of three homeowners have either completely paid off their mortgages or have at least 50% equity in their homes.
To put this into perspective, CoreLogic reports the average homeowner has $311,000 in equity. That’s a substantial amount of net worth that can make your next move easier and more affordable.
Here’s why it matters:
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The Rise of All-Cash Buyers
Thanks to these high equity levels, more homeowners are able to buy their next home outright with cash. According to the National Association of Realtors (NAR), 26% of buyers recently purchased their homes without a mortgage.
Imagine the freedom of buying your next home in cash—no monthly payments, no interest rates, and no worries about fluctuating financing costs.
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A Larger Down Payment for Your Next Home
Even if you don’t have enough equity to buy your next home in cash, leveraging your equity can help you make a larger down payment. This can lower your monthly mortgage payments and potentially secure you a better interest rate.
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Financial Freedom and Flexibility
Equity gives you options. Whether you’re looking to upsize, downsize, or relocate, the equity in your current home can provide the financial foundation you need to make a confident move.
How Do You Know How Much Equity You Have?
The first step to leveraging your equity is understanding how much you have. A Professional Equity Assessment Report (PEAR) from a trusted real estate agent can give you a clear picture of your home’s market value and how much equity you’ve built.
Once you have this information, you can determine if you’re in a position to:
- Buy your next home with cash.
- Make a substantial down payment to lower your mortgage costs.
- Use your equity to invest in your future, whether that’s a new home or something else entirely.
The Bottom Line
Homeowners today are sitting on an unprecedented amount of equity, and it’s opening doors to new possibilities—like buying a home in cash or making a significant down payment on your next one.
If you’re curious about how much equity you have and how it could help you make your next move, now is the perfect time to find out. Call 972-863-0792 today to connect with an experienced real estate agent who can provide a professional equity assessment and guide you through your options. Let’s turn your equity into your next dream home!