Building equity in your home is one of the greatest financial benefits of being a homeowner. At the moment, homeowners throughout the country are sitting on unprecedented levels of equity.

Let's explore how that equity can really change the game for you. It might just shift your viewpoint from thinking, “Why would I move right now?” to “Why wouldn’t I?”

Home Equity: What Is It?

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

Why Equity Is Such a Big Deal for Homeowners Looking To Sell

Recent data from the Census and ATTOM highlights just how important home equity is right now. In fact, over two-thirds of homeowners either own their homes outright, which is represented in green on the chart below, or have at least 50% equity, shown in blue.

That’s significant. Consider this: 2 out of 3 homeowners have over 50% equity in their homes. To give you a clearer picture, CoreLogic reports that the average homeowner has approximately $311,000 in equity. That level of net worth can be a big advantage if you're looking to make a change.

That’s why we’re seeing a record high in all-cash buyers recently. An annual report from the National Association of Realtors (NAR) indicates that 26% of buyers managed to purchase their homes without needing a mortgage.

Imagine being able to buy your next home outright with cash. No mortgage, no monthly payments, and no interest rates to worry about. If you’re curious about how much equity you have to make this possible, reach out to a real estate agent and request a professional equity assessment report (PEAR).

You might discover that you have enough equity to purchase your next home outright. With today's mortgage rates, avoiding a home loan would be quite a benefit. Even if your equity isn't sufficient for an all-cash purchase, it could still allow you to make a larger down payment, which comes with its own advantages.

Bottom Line

Homeowners today are sitting on a significant amount of equity, which is driving an increase in all-cash buyers. If you’d like to find out how much equity you have and discuss how it might help with your next move, let’s connect.