One Number Could Change Everything About Your Next Move

When was the last time you received a professional opinion of what your home is actually worth?

We’re not talking about an estimate generated by an online valuation tool—or assuming your home is worth the same as a neighbor’s property that recently sold. We’re talking about a careful, market-based evaluation of what your particular home could sell for in today’s market.

For many homeowners, it has been years since they’ve had that conversation. And if you’ve thought about moving but higher home prices or today’s mortgage rates have caused you to hesitate, it may be time to take another look.

The number that could change everything is the amount of equity you have in your home.

Your Home May Be Worth More Than You Realize

Home values have increased considerably over the past five to ten years. Even though today’s real estate market is more balanced than it was a few years ago, many homeowners are still building wealth simply by owning their homes.

Equity generally grows in two ways:

• Your home increases in value.

• You reduce your mortgage balance through your monthly payments.

Over time, those two things can add up to a substantial amount of money.

According to Cotality, the typical homeowner with a mortgage now has approximately $310,500 in equity. That is a national average, and homeowners in some states have built considerably more.

Of course, every home and every local real estate market is different. That’s why the most important question isn’t how much equity the average American homeowner has.

The question is: How much equity do you have in your home?

If you don’t know that number, you may not have a complete picture of what is financially possible.

Your Equity Could Be the Missing Piece in Your Next Move

We understand why many homeowners feel reluctant to move.

Home prices are higher than they were several years ago. Mortgage rates aren’t close to the historically low 3% rates many homeowners currently have. Giving up a low mortgage rate can be a difficult decision, and it should never be taken lightly.

But your current mortgage rate is only one part of the equation.

If you have owned your home for several years, you may not be starting your next purchase from scratch. The equity you’ve accumulated could give you a much larger down payment, reduce the amount you need to finance and completely change the monthly-payment calculation.

In other words, your next home may cost more—but you may also be bringing considerably more money to the transaction than you realize.

What Could You Do with Your Home Equity?

Whether you need more space, want a different location or are ready to downsize, your equity could help bridge the gap between the home you own today and the lifestyle you want next.

Depending on your financial circumstances, your home equity could help you:

Make a Larger Down Payment

A larger down payment means borrowing less money. With today’s mortgage rates, reducing the size of your loan can make a meaningful difference in your monthly payment.

It may also help you eliminate private mortgage insurance, strengthen your offer and make your next home more affordable over the long term.

Purchase Your Next Home with Cash

This possibility surprises many homeowners. After years of appreciation and mortgage payments, some people have built enough equity to purchase their next home without a mortgage—especially when they are downsizing or moving to a less expensive area.

According to the National Association of Realtors, 26% of repeat buyers paid cash for their homes in July.

A cash purchase can eliminate the monthly principal-and-interest payment, remove concerns about current mortgage rates and make an offer more attractive to a seller.

Improve the Home You Already Own

Moving isn’t always the best answer.

If you love your neighborhood and location but your home no longer fits your needs, your equity may provide a way to renovate or remodel. That could mean updating the kitchen, adding a main-floor bedroom, finishing the basement or modifying the home so you can remain there comfortably for many more years.

The right improvements may make your home more enjoyable today while potentially adding value when you eventually decide to sell.

Knowing Your Equity Gives You Options

Your equity won’t eliminate every challenge in today’s market. But it could give you considerably more purchasing power, flexibility and control than you thought you had.

That’s why your home’s value shouldn’t be something you have to guess about.

If you’re considering a move—or simply want to understand your options—the best place to start is with a professional evaluation of your home’s current market value.

At the Parker Colorado Home Center, we can prepare a complimentary, personalized Home Equity Assessment showing:

• What your home may reasonably sell for in today’s market

• Your estimated selling expenses

• Your approximate mortgage payoff

• The amount of equity you may have available

• How that equity could affect your next purchase

This isn’t an automated online estimate. It’s a professional evaluation based on your home, its condition, recent comparable sales and current buyer activity in your neighborhood.

Once you know the number, the question may no longer be whether you can afford to move. The better question may be: What kind of move makes the most sense for you?

Bottom Line

If it has been a while since you’ve had a professional evaluation of your home, now may be the right time.

Contact Bob and Cheryl Bustin at the Parker Colorado Home Center for a complimentary Home Equity Assessment. We’ll help you understand what your home could sell for, how much equity you may have accumulated and what that could mean for your next move—without pressure or obligation.