Here’s how home equity makes owning real estate like owning stocks.
It may seem like we’re in the middle of a cold spell for real estate, but I’ve been talking to a lot of homeowners about getting their properties on the market really soon. Some of them have owned their properties for quite a few years, but they don’t understand their equity position or even what equity is.
As you visit with a real estate professional, you’ll hear about reports like a CMA, which Realtors can use to find out what your home might sell for in today’s market. That’s completely different from home equity, though.
Your home equity is the difference between what you paid for a home and what it’s actually worth. When you own a home, it’s like owning stock in your property. That home should be appreciating in value over time. If your home has that equity built up, what can you do with it? You could buy a bigger home, for one. You could also downsize to a smaller home and use the extra money for your retirement, a vacation, or another investment vehicle.
If you’re interested in finding out what kind of equity you have in your home, I’d love to help you out. Give me a call or send me an email today. I’m happy to answer any questions you may have.