What Every Homeowner Should Know About Their Equity
Curious about selling your home? Understanding how much equity you have is the first step to unlocking what you can afford when you move. And since home prices rose so much over the past few years, most people have much more equity than they may realize. Here’s a deeper look at what you need to know if you’re ready to cash in on your investment and put your equity toward your next home. Home Equity: What Is It and How Much Do You Have? Home equity is the difference between how much your house is worth and how much you still owe on your mortgage. For example, if your house is worth $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000. Recent data from the Census and ATTOM shows Americans have significant equity right now. In fact, more than two out of three homeowners have either completely paid off their mortgages (shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in the chart below): Today, more homeowners are getting a larger return on their homeownership investments when they sell. And if you have that much equity, it can be a powerful force to fuel your next move. What You Should Do Next If you’re thinking about selling your house, it’s important to know how much equity you have, as well as what that means for your home sale and your potential earnings. The best way to get a clear picture is to work with your agent, while also talking to a tax professional or financial advisor. A team of experts can help you understand your specific situation and guide you forward. Bottom Line Home prices have gone up, which means your equity probably has too. Let's connect so you can find out how much you have in your home and move forward confidently when you sell.
Why Moving to a Smaller Home After Retirement Makes Life Easier
Retirement is a time for relaxation, adventure, and enjoying the things you love. As you imagine this exciting new chapter in your life, it's important to think about whether your current home still fits your needs. If it's too big, too costly, or just not convenient anymore, downsizing might help you make the most of your retirement years. To find out if a smaller, more manageable home might be the perfect fit for your new lifestyle, ask yourself these questions: Do the original reasons I bought my current house still stand, or have my needs changed since then? Do I really need and want the space I have right now, or could somewhere smaller be a better fit? What are my housing expenses right now, and how much do I want to try to save by downsizing? If you answered yes to any of these, consider the benefits that come with downsizing. The Benefits of Moving into a Smaller Home There are many reasons why you should downsize. Here are just a few from Bankrate: Your Equity Can Help Make Downsizing Possible If those perks sound like something you’d want, you may already have what you need to make it happen. A recent article from Seniors Guide shares: “And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .” If you’ve been in your house for a while, odds are you’re one of those homeowners who’s built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Greg McBride, Chief Financial Analyst at Bankrate, explains: “Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.” When you’re ready to use all that equity to fuel your next move, your real estate agent will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate. Bottom Line Starting your retirement journey? Think about downsizing – it could really help. When you're ready, let’s connect. Give us a call at (515) 329-4667 and we’ll help get your downsizing process started in finding your next home.
Greater Des Moines Housing Market Update June 2024
As of July 8, 2024, here is the most up to date national housing market data directly from Des Moines Area Association of Realtors® for May 2024. - Inventory is up 23.69% - Home sales are up 7.95% - Median sales price is up 3.63% at $299,500 - Days on market is up from April at 61 days If you are a buyer, the great news is that there are more homes available on the market for you to shop around and find your dream home. You also have a good amount of time to shop as homes aren’t selling too quickly where you don’t have to feel rushed to make an offer on each property you like. If you are a seller or considering selling your home right now, home prices have increased which means you could get more money for your home if you were to sell now. Additionally, home sales have increased which means that there is a large buyer pool of people to view your home. If you are considering selling your home or are even the slightest bit curious about what your home could sell for in this current housing market, check out our Instant Home Valuation page on our website here https://zealtynow.com/evaluation. There is absolutely no obligation to sell and we won’t pester you. If you are a buyer out there searching for your dream home or have questions about how to get into the market, we are happy to answer any questions that you may have. You can contact us at zelda@zealtynow.com or call us at (515) 329-4667.
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