Page 5 - Spring-2025-Sellers-Guide

How Home Equity May Help You

Buy Your Next Home in Cash

Building equity in your house is one of the biggest financial advantages of homeownership.
And right now, homeowners across the country are sitting on near record amounts of it.

Here’s a look at how that equity could be a game changer for you, and why it’ll flip your
perspective from “Why would I move right now?” to “Why wouldn’t I?”

Home Equity: What Is It?

Home equity is the difference between how much your house is worth and how much you still
owe on your mortgage. For example, if your house is valued at $400,000 and you only owe
$200,000 on your mortgage, your equity would be $200,000.

Why Equity Is Such a Big Deal for Homeowners Looking To Sell

Recent data from the Census and ATTOM shows how significant today’s home equity really is.
In fact, more than two-thirds of homeowners have either completely paid off their mortgages
(shown in green in the chart below) or have at least 50% equity in their homes (shown in blue in
the chart below):

Mortgaged Homes
with > 50% Equity
Over 2/3 of Americans 39.3% 29.0%
Have Paid Off Their Mortgaged Homes
Mortgage or Have at with < 50% Equity

Least 50% Equity 31.7% Owns the Home Free

and Clear

Sources: Census, ATTOM Data

That’s a big deal. Think about it: 2 out of every 3 homeowners have at least 50% equity in their
homes. To put a more tangible number on it, the Intercontinental Exchange (ICE) says the

average homeowner with a mortgage has over $319,000 in equity. That kind of net worth can go
a long way if you’re trying to make a move.

5 5