Check The Equity In Your Home - You May Be Surprised!

Many homeowners looking to sell feel like they’re stuck between a rock and a hard place right now. Today’s mortgage rates are higher than the one they currently have on their home, and that’s making it harder to want to sell and make a move. Maybe you’re in the same boat?

But what if there was a way to offset these higher borrowing costs? There is. And the money you need probably already exists in your current home in the form of equity.

What Is Equity? I actually presume you all know what equity is, but here ya go....

Think of equity as a simple math equation. Freddie Mac explains:

“. . . your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.”

Your equity grows as you pay down your loan over time and as home prices climb. And thanks to the rapid home price appreciation we saw in recent years, you probably have a whole lot more of it than you realize. We can tell you how much!

The latest from the Census and ATTOM shows 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 (shown in blue in the chart below):

That means the majority of homeowners have a game-changing amount of equity right now. Game-A-Changing indeed!

How Your Equity Can Help Fuel Your Move

After you sell your house, that equity can help you move without worrying as much about today’s mortgage rates. As Danielle Hale, Chief Economist for Realtor.com says:

“A consideration today’s homeowners should review is what their home equity picture looks like. With the typical home listing price up 40% from just five years ago, many home sellers are sitting on a healthy equity cushion. This means they are likely to walk away from a home sale with proceeds that they can use to offset the amount of borrowing needed for their next home purchase.”

To give you some examples, here are a few ways you can use equity to buy your next home that you may not have thought about:

Be an all-cash buyer: If you’ve been living in your current home for a long time, you might have enough equity to buy your next home without having to take out a loan. If that’s the case, you won’t need to borrow any money or worry about mortgage rates. 

Make a larger down payment: That equity can be used toward your next down payment. It might even be enough to let you put a larger amount down, so you won’t have to borrow as much at today’s rates. Win-Win!

The First Step: Determine How Much Equity You Have in Your Home

Want to find out how much equity you have? To do that, you’ll need two things:

The current mortgage balance on your home. The current value of your home.

You can probably find the mortgage balance on your monthly mortgage statement. To understand the current market value of your house, you can pay hundreds of dollars for an appraisal, or you can contact a local real estate agent who will be able to present to you, at no charge, a professional equity assessment report (PEAR). Yes, of course, we can do that!

Once you’ve connected with a trusted local agent and run the numbers, you’re one step closer to making a move you may not have thought was realistic – all thanks to your equity.

Just give us a holler, we'll let you know the amount of equity in your home!

What Buyers Want Right Now ~ July 2024

Because Leslie, Jennifer, and I have our 'head in the game', we know what's selling quickly .... for the most part. And, it's houses that are either extremely desirable ... one of a kind .... or one that is gorgeous and move-in ready. Buyers are paying big bucks, with high interest rates right now. They want the best for paying top dollar.

So, here's a blog post that I copied and pasted from a company I get email campaigns daily. Not gonna kid you though, you'll spot my opinions mingled in their paragraphs! 😄

"If you’re thinking about selling your house, you should know there are buyers who are ready and able to pay today’s high prices. But they want a home that’s move-in ready. A recent press release from Redfin explains:

“Buyers are still out there and they’re willing to pay today’s high prices, but only if the house is in really good shape. They don’t want to spend extra money on paint or new appliances.” Boy oh boy, if I could tell you all the crap we had to do to our first Valencia home!

It makes sense when you think about it. They’re having to pay a lot of money for a house in today’s market. That means they may not be able to easily afford upgrades after they move in. So, if your home is outdated or needs some work, buyers might pass it by or offer a lower price than you were hoping for.

And there are a lot of homes that need upgrades right now. Millions are entering their prime remodel years, meaning they’re between 20 and 39 years old. Maybe yours is one of them. 

If your house falls into this category, it’s important to consider making selective updates to help it appeal to buyers, so it sells faster. But how do you know where to spend your time and money?

Why You Need a Real Estate Agent (raising hand here!)

By working with a local real estate agent to be strategic about the improvements you make, you can be sure you’re making a smart investment. Put simply, not all upgrades are worth the cost. As Bankrate says:

“Before you spend money on costly upgrades, be sure the changes you make will have a high return on investment. It doesn’t make sense to install new granite countertops, for example, if you only stand to break even on them, or even lose money.”

And, as that same Bankrate article goes on to say, that’s where a local real estate agent comes in:

“. . . a good real estate agent will know what local buyers expect and can help you decide what needs doing and what doesn’t.” You know a GREAT local 'family' of agents, right? 😉😉😉

Just in case you forgot who your 'family' is!

Your agent will know what buyers in your area are looking for and what they’re willing to pay for it. By working together, you can avoid spending money on upgrades that won’t pay off. Instead, they’ll fill you in on which changes will make your house more appealing and valuable.

Bottom Line

Selling a house right now requires more than just putting up a For Sale sign. You need to make sure it’s in good condition to attract buyers who are willing to pay today’s high prices.

The way to do that is by making smart improvements that will give you the best return on your investment. Work with a local real estate agent so you know what buyers are looking for and what your house needs before selling."

Smart article. Can you tell where I interjected? 

Thoughts Post Debate

Yeah, we all saw that debate. Yeah, a lot of you probably aren't satisfied with your partys' candidate. So, if you're wondering how the election may affect housing?

Some Highlights:

Are you wondering if the upcoming election will have an impact on the housing market? Here’s what history tells us you need to know if you’re considering a move.​

Data shows home sales slow in November but quickly bounce back and rise the following year. Prices usually keep climbing. And mortgage rates typically come down slightly.

Presidential elections have only a small and temporary impact on the housing market. If you have questions, connect with a real estate agent.

Connect with us now so we can help you navigate when you're ready!

Santa Clarita Home Sales Activity ~ July 5th, 2024

Hope you all had a wonderful Independence Day yesterday! Ours was peaceful, no fireworks at all. Dogs slept like babies!

Market is changing, a wee bit. Home sales have slowed, a wee bit. Prices aren't as inflated, a wee bit. Inventory has grown, yep, you got it, a wee bit.

Including Acton to the East, Stevenson Ranch to the West. Castaic to the North, and Newhall to the South, plus all the little hoods in between....

(Do You Know Where The Community Is From This Picture?)

ACTIVE Homes for Sale ~ 484

COMING Soon ~ 14

UNDER Contract ~ 309

SOLD in the last 30 days ~ 281

So, obviously, if you've been reading my posts for a few years now, inventory is up, but not normal. Closed sales are down, but, near normal. Nuff Said, right?!?

Funny stuff about Real Estate ... some clients will tell you everything that is going on in their world, so we'll understand their actions & reactions. Others, few though, just don't. And, that makes it harder to understand why their actions & reactions are what they are. Realtors are like counselors. If you don't tell us the absolute truth, we can't help you in the best way possible.

Food for Thought.

No matter which one of us you work with, 

definitely let us know what's going on in your world. 

We are your 'Real Estate Home Counselor', 

during one of the biggest events of your life.