First of all, What is home equity?
Home equity is the market value of a homeowner's unencumbered interest in their real property, that is, the difference between the home's fair market value and the outstanding balance of all liens on the property.
You might be wondering right now, how do I know how much equity I have in my home?
So you bought your house a few years ago, or maybe you bought it just a couple years ago. I am going to use my friend Anne as an example. She bought her house in Sacramento in 2016 for $308,000. The house is 3 beds, 2 baths, and around 1300 square feet. At the time, she used a First Time Homebuyers loan and her mortgage amount was around $290,000.
Today, her house would sell for about $475,000. If she got her asking price of $475,000, she would need to pay back the bank that holds her mortgage the $290,000 (or so) and she would be left with approximately $185,000, minus some fees and costs associated with the sale.
And that brings us to our next question: how do I find out the current market value of my home?
I'm glad you asked! A realtor can tell you, based on recent, local, sold, comparable homes, how much your home would be worth in today's market! Your home may be worth more than you think! And, due to low inventory and increased buyer demand, it may sell for more than your list price.
Contact me today to get a current market analysis for your home. You'll be surprised!
sarah@sarah-ratliff.com
530-391-1576
