Selling Your Home - Magazine - Page 14
According to the study, if you bought the average-priced home in...
•
The mid-90s: You could be sitting on over $400,000 in equity now.
•
The early 2000s: You could have over $330,000, even with owning during the
housing crash.
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In 2015: Even in that shorter 10-year time frame, many homeowners have already
built nearly $285,000 in equity.
Real Examples of How Homeowners Gain Equity Over Time
Factoring in Purchase Price, Price Growth, and Monthly Payments
Purchase
Year
Purchase
Price
Down
Payment
(20%)
Principal
Paid Down
Value
Gained
Total
Equity
1995
$114,600
$22,920
$91,680
$320,700
$435,300
2005
$229,000
$45,800
$84,317
$206,300
$336,417
2015
$236,300
$47,260
$38,476
$199,000
$284,736
* Estimates based on the purchase of a median-priced home
Source: Realtor.com
…
Of course, your actual number is going to vary based on the purchase price, any work you've
done to the house, the size of your original down payment, and more. The point is, a lot of
homeowners are sitting on hundreds of thousands of dollars in equity. And that can offset
nearly every concern you have about moving right now.
•
Worried about taking on a higher mortgage rate? Your equity could cover a
significant down payment. And the more money you put down, the less you need to
finance at today’s rates.
•
Ever thought it would be easier to just buy your next house in cash? Thanks to
your equity, that may be possible. And an all-cash offer is something that's going to
appeal to a lot of sellers because they don’t have to worry about their buyer’s
financing falling through at the last second.
Bottom Line
If you haven’t had someone help you understand the value of your home this year, let’s
connect to take a look. It doesn’t mean you have to sell. But it does mean you’ll know what
you could be working with – and how far that number can take you.
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