How Home Equity May Help You Buy Your Next Home in Cash

Building Equity in Your House: A Game-Changer for Homeowners in Greater Cincinnati, Northern Kentucky, and Southeast Indiana

Owning a home provides many financial advantages, but one of the most significant is building equity. Right now, homeowners across the country are sitting on record levels of equity, and it could be the key to helping you achieve your next real estate goals.

Whether you’re searching for homes for sale, thinking “How can I sell my house?” or just curious about how much your property is worth, your home equity might surprise you.

What Is Home Equity?

Home equity is the difference between your home’s current market value and the balance you owe on your mortgage. For instance, if your home is valued at $400,000 and your mortgage balance is $200,000, you have $200,000 in equity.

Why Is Home Equity a Big Deal for Sellers?

For homeowners in Greater Cincinnati, Northern Kentucky, and Southeast Indiana, your equity could be your biggest asset if you’re planning to sell your house or purchase a new one.

Recent data from the Census and ATTOM reveals that more than two out of three homeowners nationwide have either completely paid off their mortgages or have at least 50% equity in their homes. Here’s why that matters:

• The Numbers Speak: CoreLogic reports that the average homeowner has built up $311,000 in equity.
• More Options for Sellers: This significant equity has contributed to a rise in all-cash homebuyers. According to the National Association of Realtors (NAR), 26% of buyers recently purchased homes without needing a mortgage.

Imagine using your equity to buy your next home outright. No mortgage. No monthly payments. No interest rates. Even if you can’t buy your next home in cash, leveraging your equity can help make a larger down payment, potentially reducing your monthly payments or allowing you to secure better financing terms.

How to Leverage Your Equity in the Local Market

If you’re considering a move, now is the time to evaluate how much equity you have. Work with a real estate professional to get a Professional Equity Assessment Report (PEAR). This tool helps you understand your financial position and explore your options, whether you’re looking to upgrade, downsize, or relocate to a new home in Greater Cincinnati, Northern Kentucky, or Southeast Indiana.

Bottom Line

For homeowners thinking about how to sell their house or find their next dream home, equity is a game-changer. With today’s elevated home equity levels, you have the opportunity to achieve your goals in the real estate market.

If you’re ready to explore your options, connect with a local real estate expert to discuss how your equity can work for you. Whether you’re searching for homes for sale or planning to list your current property, now is the perfect time to act.