We have great news for many homeowners: if you’ve owned your home for multiple years, you’re likely sitting on record-high levels of home equity! Before we discuss what that means for you, let’s back up a bit and take a look at why equity is so important.
What is equity and why is it so important?
Home equity is the current value of your home minus what you owe on the loan.
Building equity over time is one of the most important benefits of being a homeowner. Every time you make a mortgage payment and pay more of the principle of the loan, you make another step towards increased financial strength in the future. History has shown that over time, equity builds wealth.
When home values rise, equity gets an extra boost. This is exactly what’s happened in the last couple of years. Home values soared when the market was hot, due to supply and demand.
American homeowners have record amounts of equity right now.
Now, homeowners are sitting on record amounts of equity. CoreLogic’s most recent Homeowner Equity Insights report tells us that “U.S. homeowners with mortgages (roughly 63% of all properties) have seen their equity increase by a total of $1 trillion since the fourth quarter of 2021, a gain of 7.3% year over year.”
Selma Hepp, Chief Economist for CoreLogic, explains what’s happened since: “While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic.” In addition, home prices have stayed strong in some markets.
What does this mean for you?
If you’ve owned your home for a number of years, you likely are in a great position when it comes to equity! Equity creates financial stability and opens up doors for you to achieve your goals. If you sell your home, the equity you’ve built up comes back to you in the sale. This money can lower or possibly even eliminate mortgage payments on your next home. This is even true for distressed homes, as long as you’ve owned them long enough. The real estate market is showing signs of stabilizing, so now could be a great time to use your equity to get your dream home.
Make the most of your equity:
When you work with MarketPro, you make the most of your equity. Here’s why: you don’t pay any commissions or fees. You don’t need to make costly repairs, since we buy as-is. You’re simply getting cash for your home without having to take extra costs into account.
If you’re wondering the following:
Can I sell my house to MarketPro if the plumbing needs work?
Can I sell my house to MarketPro if the foundation has cracks?
Can I sell my house to MarketPro if it needs new appliances?
The answer to these questions is yes! We buy in any condition, without requiring any repairs. You can get the cash you need to buy your dream home.
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.