Your Equity Could Change Everything About Your Next Move

A lot of homeowners are asking the same question right now: “Is it even a good time to sell my home?”  The answer surprises many people. For a large number of homeowners, the answer is yes; and the reason comes down to one powerful factor: home equity. If you’ve owned your home for several years, there’s a strong chance you’re sitting on far more equity than you realize. And once you understand what that number really looks like, it could completely change how you think about your next move.

The Hidden Wealth of Homeownership

Home equity is the difference between what your home is worth today and what you still owe on your mortgage. It grows in two key ways:

• Every mortgage payment builds ownership. Each payment reduces your loan balance, increasing your share of the home.
• Home values tend to rise over time. Appreciation steadily boosts your home’s overall value.

Together, these two forces work quietly in the background, building wealth month after month and year after year. For homeowners who’ve lived in their property for a long time, that wealth can be substantial. According to Realtor.com, nearly 45% of homeowners have lived in their home for more than 15 years, and one in four for over 25 years. If that sounds like you, consider what decades of appreciation and consistent payments may have done to your financial position.

How Much Equity Are Homeowners Really Sitting On?

Recent research from Realtor.com helps put real numbers behind the concept of equity. Using median home prices as a baseline, the data estimates how much equity homeowners may have built depending on when they purchased their home.

Here’s what that looks like:

• Bought in the mid-1990s? You could be sitting on $400,000+ in equity today.
• Bought in the early 2000s? Even including the housing crash, many homeowners have accumulated over $330,000 in equity.
• Bought around 2015? In just about 10 years, homeowners may have built nearly $285,000 in equity.

Of course, your personal equity will vary based on your purchase price, down payment, improvements made to the home, and local market conditions. But the takeaway is clear: Many homeowners are sitting on hundreds of thousands of dollars in equity without fully realizing it.

How Your Equity Can Power Your Next Move

This is where equity becomes more than just a number . . . it becomes a strategy.

Offset Higher Mortgage Rates

Concerned about today’s interest rates? Your equity can help ease that worry. By using proceeds from your current home toward a larger down payment, you reduce how much you need to finance; and that can significantly lower your monthly payment.

Compete More Strongly as a Buyer

In competitive markets, equity can give you a major edge. Some homeowners are even able to purchase their next home all-cash, eliminating financing contingencies altogether. Cash offers are extremely attractive to sellers because they reduce risk and uncertainty.

Move Up, Downsize, or Relocate with Confidence

Whether you’re looking to move up, downsize, relocate, or simplify your lifestyle, equity gives you options. It can fund renovations, cover closing costs, or provide financial flexibility during the transition.

Know Your Number

Understanding your home’s value doesn’t mean you have to sell,  but it does mean you’ll be informed. Knowing how much equity you have allows you to make confident decisions, whether you move this year or five years from now. If you haven’t had a professional review of your home’s value recently, now is the perfect time to take another look. You may be surprised by how far your equity can take you.