“Equity” is the value you own in a property, such as a house. It’s the difference between what’s owed and what the property is worth in the current market.
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Let’s say you have a house worth three hundred thousand dollars today and you owe the bank two hundred thousand dollars. Your equity would be 100,000 dollars. If the house is valued at 500,000 dollars in five years and you still owe 150,000 dollars, your equity will be $350,000. Equity grows if the property value goes up or if the amount owed goes down.
Equity in a home can be used as collateral for loans, but a house is not a piggy bank. Home equity can become a key financial asset over time. Treat it wisely. So, if you’re thinking about buying or selling a home and have any questions, feel free to contact us.
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One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.