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Heres How to Get the Best Return from Your Home Equity

Heres How to Get the Best Return from Your Home Equity

As a homeowner, you've likely been investing in equity over the course of your property ownership. With careful planning, this investment can be used strategically to leverage an upgrade on your next home purchase. Creating a workflow that focuses on maximizing your return from the sale of your current house is key to unlocking those financial resources and building up your equity position even further. In this blog post, we'll look at how to get the best return possible when leveraging the much needed funds generated by selling your home.

Being a homeowner comes with many advantages, one of the most significant being that your equity increases as years pass. After selling your home, this built-up equity can be put towards buying another property - however, it's important to first understand what exactly equity entails and how it accumulates. Bankrate outlines this concept in simple terms:

“Home equity is the portion of your home you’ve paid off – in other words, your stake in the property as opposed to the lender’s. In practical terms,home equity is the appraised value of your home minus any outstanding mortgage and loan balances.”

Research the market and know your home's value to determine the best selling price

Having the knowledge of your home's market value can be a powerful asset when you're ready to list it for sale. Taking time to do your research provides invaluable insight into current market conditions and can aid in determining the best possible offer price. Not only can understanding your property’s worth give you more confidence in the process of selling, but being informed on current market trends can help you optimize a return on your investment in the form of profitable equity.

Majority of Americans Have a Large Amount of Equity

If you've been a homeowner for some time, chances are there's plenty of equity in your property that you may not be aware of. According to the U.S Census Bureau and ATTOM data sources, most Americans possess an impressive amount of home equity as illustrated below:

Homeowners gain numerous advantages by building up a significant amount of equity. As Rick Sharga, Executive Vice President of Market Intelligence at ATTOM explains:

“Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash like the one we saw in 2008.”

As you remain in your home, the equity of it will grow. Not only does this provide fiscal steadiness while residing there, but when you decide to put your house on the market one day, that money can go quite a distance towards affording another residence.

Make cosmetic improvements to your home to increase curb appeal and attract potential buyers

Enhancing the aesthetics of a home is one of the most effective ways to increase its value and attract potential buyers, especially when trying to sell your current house quickly. Those considering selling their home should focus on making cosmetic improvements such as adding a fresh coat of paint, new lighting, or updating cabinetry and countertops to create an inviting atmosphere for those visiting. With these improvements, buyers will be more likely to invest in your property, allowing you to maximize profits from all that hard-built equity.

Market your home with professional photos and a well-written description of its features

Selling a house can be an exciting, yet stressful venture. To make the transition as smooth as possible it is important to properly market your home. One way to do this is by utilizing professional photos and creating a well-written description of its features. Doing so allows buyers to gain insight into what you have to offer and gives them a good visual representation of your property; ultimately getting prospective buyers eagerly interested in all your home has to offer! Investing in showcasing your house can definitely go a long way in helping you cash in on the equity you've built up over time.

Invest in staging services and furniture rentals, if needed, to showcase your house’s potential

Investing in staging services and furniture rentals can be a great way to really show off your home's potential. Staging itself is beneficial as it highlights the best aspects of a home, making it look more appealing to buyers. Additionally, furniture rental services are easy and convenient solutions for those who wish to give their homes a quick makeover prior to selling. In addition to making the house look better overall, these steps can lead to an increase in housing value. As such, they may be worthwhile investments that will pay off when you go sell your house and get the equity you have built up over time.

Use open houses, virtual tours, and other strategies to attract buyers

Selling a home can be both an exciting and stressful time. To make this process as smooth as possible, using open houses, virtual tours, or other effective strategies can help attract buyers who would best appreciate the property. Having potential buyers view the home in a variety of ways increases the likelihood of selling it quickly - and for a high price. Utilizing creative marketing tactics such as these can also open doors to buyers seeking to move into the area from far away. By capitalizing on the potential of open houses, virtual tours, and other ideas, you have the power to get your house off the market faster while achieving a higher return on your investment.

Once you have an offer, negotiate for the best closing terms possible to maximize profits

Once you've accepted an offer on your home, it's important to negotiate closing terms that will give you the highest return. Everything from how much of the seller-paid closing costs are covered to when payments are due should be taken into account as part of the negotiation process. You'll want to make sure you're getting a fair deal in order to maximize the profits from selling your home. Knowing what to expect and having a good idea of typical market prices can help make sure nothing falls through the cracks, so research ahead and don't overlook any details during negotiations. Doing so can help ensure a successful sale with great returns!

If you’re considering selling your house, the home equity that you can receive from a successful sale can be a valuable asset when purchasing your next home. With proper market research, targeted improvements and staging services, effective marketing strategies and smart negotiations that get the most out of an offer, this dream could come true. With patience and dedication, you’ll be able to increase your profits from the sale of your current house and ensure you are financially secure when it comes time to make your next move. Don’t let the prospect of finding a buyer hold you back—using these helpful tips allows you to realize the dream of financial security through owning a home!

Selling your current residence and leveraging the equity you have accumulated can make it easier to pay for a new home. Connect with us today so we can help calculate how much of a nest egg you possess, and start strategizing your next move.