Equity and Your Home Selling Decision

By Michael Infanti, Esq.

Many homeowners consider selling for various reasons, including affordability. Understanding your home’s equity can significantly impact this decision. Two primary factors influence equity: homeowner tenure and home price appreciation.

Homeowner Tenure The average homeowner tenure in the U.S. has increased from six years to ten years in recent decades. This means many homeowners have been building equity for a significant period.

Home Price Appreciation Home prices have consistently risen over time. According to the FHFA, a typical homeowner who has owned their home for five years has seen an increase in value of nearly 60%. For those who have owned their home for 30 years, the appreciation is over 300%.

The Power of Equity Whether you’re downsizing, relocating, or seeking a change in lifestyle, your equity can be a valuable asset. It can contribute to a down payment on a new home, help offset closing costs, or even provide financial flexibility.

Next Steps To determine your equity and explore how it can benefit your home selling goals, consult with a local real estate agent. They can provide personalized guidance and help you make informed decisions.

Preferred Settlement Services is a full-service title and closing company. With decades of combined experience, our team ensures a smooth closing process, no matter the challenges. Contact us at 941-376-9551 for more information or to schedule a closing.