3 Ways to Utilize Your Homes Equity
Depending on the length of ownership, your equity has likely grown significantly over these last few years as we all watched home prices rise month over month. That equity builds over time and according to a recent Equity Insights study the average borrower with a home loan has almost $300,000 in equity right now!
So what could you do with that equity?
1. Buy a Home More Suitable To Your Needs
Maybe you have outgrown your current space or you have too much space and need something smaller. Whether the former or the latter consider using your equity to ignite a move into a home that fits your needs. You could utilize current equity for a down payment on a new home and if downsizing that initial down payment could be quite substantial.
2. Reinvest in Your(future self) Current Home
Home improvement projects can certainly help make old spaces feel new again and in the long run can lead to a higher selling price, if the right items are chosen for upgrading. Though it may be tough or seem unexciting you do always want to think about resale value when putting money towards renovations. If you put in that “unique” tile at $50 per square foot and the next Buyer wants to rip it all out, how much is it worth then? And what costs would that Buyer be looking to recoup from the Seller to entice them to purchase that home, versus another with more standard features and benefits?
3. Go After That Dream!
If moving to a new home or renovations aren’t what you’re after, think about utilizing your equity to achieve a goal you’ve always had. Maybe you would like to finish your degree, invest in a new business, or retire. Leveraging equity properly could lead to so many things!
Orlando Real Estate Market
November 20, 2022 – November 26, 2022
Single-family existing homes
- Sales of single-family homes decreased to 217 during the week of Nov 20, from 438 the week prior
- The median price of single family homes increased to $400,000, a change of 0.3%
- Single-family inventory decreased by 124, and now sits at 5,287
Sales of condos, townhomes, and villas
- Sales of condos, townhomes, and villas decreased to 101 during the week of Nov 20, from 158 the week prior
- The median price of condos, townhomes, and villas decreased to $269,900, a change of -1.2%
- Condo inventory increased by 1, and now sits at 1,636