Your home may be worth more than you think

Key Insights

• Homeowners have record-high equity right now.
• A REALTORⓇ can help you determine your home’s market value.
• Buyer demand and home sale prices offer great opportunities for sellers.

If you’ve been putting off a home sale, it might be time to revisit your goals and get serious about capitalizing on record-high home equity.

What is home equity?

In a nutshell, home equity is the difference between what you owe on your mortgage and what your home is worth today. Your home equity grows when:

• You pay off more of your mortgage (and your home’s value stays steady)
• The market goes up and your home’s value increases (thanks to supply, demand and home price appreciation)

According to Bankrate, the average mortgage-holding homeowner had approximately $311,000 in equity near the end of 2024. That means the average seller can reinvest a large portion of that equity into a down payment on a new home and continue building their wealth.

How do I know what my home is worth?

How much a home is worth is always market-driven, which means its value is directly tied to what a buyer is willing to pay for it. And that price is influenced by a variety of factors, including the supply of homes for sale, the buyer demand on that supply, the location and condition of the property and other factors. There are a number of ways to determine how much your home is worth in today’s market:

• Property’s estimated tax-assessed value: This is determined by a county assessor using historical sales data and mass appraisal techniques in order to determine your property taxes. It can be up to two years old and will not take into consideration the unique attributes of your property.
• Automated online estimates: A computer-generated analysis compares your home to similar properties nearby that have recently sold. These comparisons are based on factors like a home’s size, location, condition and amenities and are determined by an algorithm. They do not take updates you’ve made or your home’s special features into consideration.
• Professional comparative market analysis: A licensed REALTORⓇ visits your property to do a detailed analysis of your home’s exterior, interior, updates you’ve made and its condition. They will review current market dynamics, comparable properties that have recently sold in your area, neighborhood amenities and more.

When it comes to determining your home’s market value, the more details you provide, the more accurate your valuation will be – and pricing a home right from the start is the best way to attract top dollar.

When is the best time to sell?

The old investment axiom also holds true when it comes to real estate, and that is, time in the market is much more important than timing the market. Simply put, owning a home and watching it appreciate over time is the best and most reliable investment in your future. In fact, in the last five years, the typical homeowner has built up $147,000 in housing wealth, according to the National Association of REALTORS.

Picking the right time to sell your home is personal. It should take into account your goals, finances and lifestyle. And for many homeowners with record-high equity, now might just be the perfect time to make your move.

Need a helpful resource?

Sometimes, having the help of an expert can make all the difference when it comes to understanding where the opportunities are for you. If you’re ready to take advantage of the current seller’s market in many areas– and capitalize on your home equity – reach out to Edina Realty or your REALTOR today.