Got Equity?

September 22, 2017 by Meg Decker

People who sold their homes in the second quarter of this year had the highest average price gain in ten years according to ATTOM Data Solutions. The national average was $51,000 in price gain that represents a 26% return over the price they paid for the home originally. The Twin Cities Metro was really close to the national average. Homeowners here saw an average gain of $47,000 representing a 24.4% return over their purchase prices. Another stat in ATTOM’s report shows home ownership tenure – i.e., the amount of time people are staying in homes – at an all-time high of 8.05 years.
Interesting numbers, but what do they mean? It depends on where you live and what your plans are this year, next year and in the next few.
 

Years ago when people realized they had equity in their homes, it was common to tap it regularly. That came to a screeching halt after the housing market and mortgage crises and the fact that people are staying in homes longer is also probably a result of those events. Realtors and mortgage loan officers who have remained in the industry through those unprecedented years and market conditions take a great deal of time and care to discuss things like refinancing and taking cash out of your home, moving to a larger, smaller or different home and other goals to help the public make informed decisions and protect their interests. If you’re among the lucky ones with significant equity gains – great! But there’s a few things to know if it gives you big ideas:
 
1. Do you know how much equity you currently have in your home?
You should check in with us annually to stay on top of your property value.
2. Are you thinking of selling to get more room or downsizing?
This takes planning…we need to make sure you’ll be able to find what you’re looking for and make sure the financing is in place for the next home before you accept an offer on the current home.
3. Do you have a major project like a remodel, upgrade, a cabin or second home purchase on your mind?
Let’s do a thorough analysis of the numbers and different options to reach whatever your goal is. We’ll discuss your comfort zone and make sure your ideas fit in with other goals and obligations.
 
Homeownership is still the way most Americans build worth and wealth…it’s not only a place to live, but it’s also a vital part of most people’s financial portfolio. One thing we hope both the public and the industry have learned is that it’s important to practice safe real estate. We help people realize the dream of homeownership every day at DRG; but we also help people preserve and expand on it. What can we help you with?

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