When was the last time you found out what your home is really worth? Not an online estimate or your neighbor’s sale price, but the actual value of your home right now.
For many homeowners, it’s been years since they last checked. If you’ve been thinking about moving but higher home prices or mortgage rates have made you hesitate, it may be time to take another look at what your home is really worth.
Your House May Be Worth More Than You Think
Home values have risen a lot over the past 5 to 10 years. And even with today’s more balanced market, homeowners are still building wealth simply by owning their homes. As your home’s value increases and you make your monthly payments, your equity keeps growing. And it can add up faster than you might think.
According to Cotality, the typical homeowner with a mortgage now has about $310,500 in equity. That’s a pretty significant amount of wealth sitting in your home.
And that’s just the national average. In some states, homeowners have built even more equity. Take a look at the map below to see how your state compares. The darker the blue, the more equity the typical homeowner has.
Every local market is different, but there’s one question worth asking right now: How much equity have you built up in your home?
Because if you don’t know how much equity you have, you could be missing out on a valuable opportunity.
This Could Be the Missing Piece in Your Move
A lot of people assume moving isn’t realistic right now because home prices are higher and mortgage rates aren’t at 3% anymore, especially if they already have a super low rate. And that’s completely understandable because those are real concerns.
But those aren’t the only things you should consider.
When you have that much equity in your home, you’re not starting from scratch. You already have a valuable asset working in your favor. That equity can give you a bigger advantage when it comes to your next move, and it can really change the numbers.
What Your Equity Can Do for You
Maybe you’ve outgrown your current home, or perhaps you’re ready to downsize. Either way, the equity you’ve built could help make the transition to your next home more achievable.
Yes, your next home may cost more than your current one did, but the equity you’ve built could cover a big part of that difference. Depending on how much equity you have, it could help you:
Lower your monthly payment: A larger down payment means borrowing less, and with today’s mortgage rates, that can make a meaningful difference in your monthly payment.
Buy your next home with cash: This surprises many people, but some homeowners have built enough equity to purchase their next home outright. According to the National Association of Realtors, 26% of repeat buyers paid cash for their home in July.
Improve the home you already have: Love your neighborhood but not your floor plan? You may not need to move. Your equity could help pay for renovations that make your home work better for you while potentially adding value down the road.
Your equity won’t make every challenge in today’s market disappear, but it can give you more options. When you’re ready to make your next move, you may have more flexibility and buying power than you realize.
That’s why you shouldn’t have to guess what your home is really worth.
If you’re thinking about making a move, or even just curious about your options, a Professional Equity Assessment is a great place to start. It gives you a real, market based look at what your home is worth today and how much equity you have to work with.
Because once you know the number, the question may not be whether you can afford to move. It may be about what kind of move makes the most sense for you.
Bottom Line
If it’s been a while since you’ve had your home’s value professionally assessed, now may be a great time to take another look.
Reach out for a free, personalized Home Equity Assessment to see what your home could sell for, how much equity you’ve built, and what that could mean for your next move.
