Feeling excited about the prospect of selling your home? Discovering the amount of equity you possess is a thrilling first step that unveils your potential affordability for your next home. Thanks to the substantial rise in home prices over recent years, you might be pleasantly surprised to find out that you have higher equity than you initially thought.

Here's an exciting deeper dive into what you should know if you're prepared to profit from your investment and use your equity towards purchasing your next dream home.

Home Equity: What Is It and How Much Do You Have?

Home equity is essentially the monetary difference between your house's worth and the remaining amount you owe on your mortgage. To illustrate, if your house is valued at $400,000 and you have $200,000 left on your mortgage, you have an impressive equity of $200,000.

Recent findings from the Census and ATTOM reveal that Americans currently have notable equity. In fact, over two-thirds of homeowners have either fully paid off their mortgages (depicted in green in the chart below) or possess at least 50% equity in their homes (displayed in blue in the chart below):

In today's market, more homeowners are reaping larger returns on their homeownership investments upon selling. And if you have substantial equity, it can serve as a potent catalyst for your next move.

What You Should Do Next?

If you're considering selling your house, it's crucial to ascertain your equity amount and understand its implications on your home sale and potential earnings. The ideal way to gain a clear understanding is to collaborate with your agent, while also consulting a tax professional or financial advisor. This team of experts can provide valuable insights into your unique situation and steer you in the right direction.

Bottom Line

Home prices have soared, which likely means so has your equity. Get in touch with a local real estate agent to discover the amount of equity you have in your home. This knowledge will empower you to move forward with selling your home with utmost confidence. Remember, the rewritten content should maintain the same tone, format, and structure.