Equity Is a Game Changer for Homeowners Looking To Sell

Are you conflicted about whether or not to sell your house right now? Many homeowners wrestling through this important decision hesitate to take on a higher mortgage rate on their next home. Understanding your equity can help you overcome this hurdle and give you confidence in moving forward.

What is Equity, and How Does it Work?

Equity is the current value of your home minus what you owe on the loan. Recently, that equity has been growing very fast. Home prices have risen dramatically over the last few years, increasing your equity very quickly. Even as the Kansas City housing market has started to normalize, there continues to be an imbalance between the number of homes available for sale and the number of buyers looking to purchase. Due to the high demand for homes, prices are back on the rise today. Rob Barber, CEO of ATTOM, a property data provider, explains:

“Equity levels were high even during the recent downturn, and now they are going back up and better than ever.”

How Equity Benefits You in Today’s Market

With current affordability challenges, equity can be a game changer in your decision to move. Why? According to data from ATTOM and the Census, nearly two-thirds (68.7%) of homeowners have either paid off their mortgages or have at least 50% equity (see chart below):

That means roughly 70% have a tremendous amount of equity right now.

Equity from the sale of your home could be some (if not all) of what you’ll need for the down payment to purchase your next home. It may even be enough to enable you to put forth a considerably larger down payment. This would mean less financing on your next home. Have you been in your current house for years? You may have even built enough equity to pay this amount in cash! If this is the case, you could avoid borrowing altogether. This would remove the need to worry about current Kansas City mortgage rates.

How To Find Out How Much Equity You Have

Are you interested in learning more about your current equity? Our trusted real estate experts at Just Say Home KC are qualified to provide you with a Professional Equity Assessment Report (PEAR). From there, our team will give you valuable insight into how to move forward on the sale of your home!

Bottom Line

If you plan to move, the equity you’ve gained can make a significant impact. Our Just Say Home Team is equipped with the expertise to help you determine how much equity you currently have and how to use it best to purchase your next home!