When was the last time you had a professional check the value of your home? For most people, it has been a while.
The truth is your home is likely your biggest financial asset. If you have owned it for several years, it has probably been gaining value in the background. Even with recent market shifts, you might be surprised at how much equity you have built.
What Is Home Equity?
Equity is the difference between what your home is worth today and what you still owe on your mortgage. It grows as property values rise and as you pay down your loan.
For example, if your home is worth $500,000 and you owe $200,000, your equity is $300,000. That aligns with what many owners have right now.
According to Cotality, the average homeowner with a mortgage has about $302,000 in equity.
Why You May Have More Than You Realize
1. Home Price Growth
The Federal Housing Finance Agency (FHFA) reports that home prices have risen nearly 54 percent nationwide over the last five years (see map below):
That means your home is likely worth far more than when you bought it. Even if prices level out in some areas, long-term homeowners usually have enough equity to sell and come out ahead.
2. Longer Homeownership
The National Association of Realtors (NAR) says the average homeowner now stays in their home for about 10 years (see graph below):
That is longer than in the past. Over a decade, you build equity simply by making monthly payments and benefiting from rising values. Homeownership is about the long-term picture, and over time, owners are winning.
According to NAR:
“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”
What Can You Do with Your Equity?
Equity is not just a number. It is a financial resource you can use in different ways, such as:
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Buying your next home. Equity can help with a down payment or, in some cases, allow you to purchase your next home in cash.
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Renovating your current home. Strategic updates can make your space work better for you and even increase resale value.
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Starting a business. Your equity could provide startup funds, equipment, or marketing support to help you grow new income.
Bottom Line
Your home is likely worth more than you think. If you want to know your true equity, let’s connect. I can prepare a professional equity assessment report so you understand your position and your options.
Vesta Schneider
Realtor®
Luxury Homes | Relocation | Investments
Keller Williams Realty McKinney
📞 302-530-7314
📧 vestaschneider@yahoo.com
