Did you buy a home last year? Have you owned your home for a decade? Do you have an accurate idea of how much equity you really have in your home? If you were to sell today, do you know how much cash you’d have available moving forward?
Understanding the true equity you have in your home is a vital part of understanding your complete financial picture. You may have a vague idea of what you think your home is worth, but do you really know? And if you’re not sure, can you really be sure of your equity?
I often help clients get an accurate picture of their home equity through a three step process:
First, I use a comparative market analysis to establish a probable range of sale prices for your home. This takes into account recent closings as well as the unique features your home has to offer potential buyers.
Second, we look at your current loan and any other outstanding obligations which must be settled from the proceeds of the sale.
Third, I take into account any other fees or expenses incurred during the sales process which would impact the free equity in the home.
Whether the actual equity turns out to be $1,000 or $100,000, my clients find a certain peace of mind knowing exactly where they stand. The facts can help them plan for the future and make decisions about whether or not now is a good time to make any changes.
Are you curious about your home equity position? Contact me if you’d like to learn more: Esperanza@esperanzabutler.com