How Much Equity Does Your New Berlin Home Really Have?

Many homeowners understand that as the value of their home increases, so does their equity.

“Rich, I purchased my home in New Berlin several years ago and I am convinced that it has appreciate in value over the years; however, I have no idea how much actual equity I have in the home and how much would I walk away with in 6 months or so.”

This is very important if you are planning on selling your home in the next 6 months to a year.

The amount of money you have in your home and the amount of money you can actually take from your home are two very different numbers.

Equity is essentially the difference at which your house could sell for versus what you owe on your home.

Let's assume your home could sell for $500,000. With a current mortgage balance of $200,000, that leaves you with approximately $300,000 in gross equity in your New Berlin home.

Sounds pretty good.

So then we also want to factor in selling expenses. Those would be in addition to the Gross Equity as listed above and would need to be deducted from the Gross Equity to arrive at Homeowner’s Estimated Net Proceeds.

These expenses can include the title and closing process costs (title search, title insurance, escrow fee, recording fee), any repairs you may decide to undertake before listing your New Berlin home for sale to maximize its value, any buyer credits that you agree to pay for the buyer’s inspections and other expenses related to the home selling process.

So the equity in your home is not all money to be used.

We should focus on your estimated net proceeds from sale rather than just your home’s equity.

This is where things can get tricky.

It is often smart to get your home’s estimated value online first. Many web sites give instant estimated values to homes.

Some online calculators may estimate the value of your home similar to what your local New Berlin Realtor would estimate your home to be worth but other online tools have been known to miss the mark by a large amount.

Algorithms have not walked through your kitchen to note the many updates. They have no knowledge of the condition of your roof, finished basement, etc. Nor do they have a clue about the size and quality of your lot. Moreover, it is not necessarily easy to gauge how your New Berlin neighborhood stacks up against another neighborhood a couple of miles down the road.

Your local New Berlin Realtor would research recently sold homes similar to yours, and then they could come visit your home to provide you with an accurate estimate of your home’s value.

This is where the conversation gets interesting.

You may be looking to leave New Berlin because of current mortgage rates but still have equity in your home and have enough to make a substantial down payment to your next home.

Maybe you want to stay in New Berlin but downsize into something requiring less maintenance.

Maybe you’re looking at condos, or will be moving closer to family? Perhaps you’re downsizing to something that is low maintenance?

Your equity can change what's possible.

You can use your built up equity in your New Berlin home to make a substantial down payment on your next home. You may even have enough equity in your home to purchase your next home with little to no mortgage payments.

Until we run the numbers, we have no idea.

Waiting six months to sell is no reason to start packing yet.

I'd start with three numbers:

What is my New Berlin home realistically worth?

What do I still owe?

Approximately how much would I have left after selling?

After knowing the numbers above, we can continue to explore options for your next home!

This is the kind of information a Local Realtor New Berlin WI would like to go over with you before putting a sign in your yard to sell your New Berlin home.

I can also use this same information to provide you with a better Home Value Estimator for your New Berlin home. I can give you a more accurate estimate of what your home might sell for versus some of the online home estimators found on the web.

Maybe selling your New Berlin home makes sense.

Maybe staying put does.

Wait until you know how much equity you really have in your New Berlin home!

See how I sell homes in New Berlin and how I help buyers in New Berlin. I'm Rich Barnes with Realty Experts, and I answer the phone: 414-899-8146.