Introduction
Homeowners out there, if you have been thinking about selling your home, you may be asking the question how much equity should I have in my home before selling? If so, the short answer is – well, there is no ‘short’ answer.
The fact of the matter is, there is not one answer that fits everyone. However, there is some good information you can use to make this decision. And remember, whenever you need assistance with anything to do with selling your home, you can contact us here at Sell Your House Fast Las Vegas for help!
What Is Equity
First of all, in case you need a little clarification on what equity is, it’s the amount you’ve paid towards the principal of your mortgage loan. However, typically the amount of equity you have in your home changes over time. In the beginning, most of your mortgage payments go towards interest and not the principal.
If you need to know your amount of equity, you can take your current home value and subtract the amount of your mortgage balance. In this way, you can see how your equity increases with your home’s value.
Home Value
This is basically how investing in your home works and why it’s such a great way to grow your money, and why it’s so important to do everything you can to increase your home value.
The value of your home and thus the amount of equity you have is directly impacted by factors like home improvement and housing market trends. Your home value increases over time, and other factors such as the other home values in your area, and market conditions at the time. Investing in a home is always a good bet for turning a profit and making you money.
More On Equity
A common amount of time that is recommended to build equity in your home is at least five years, especially if you want to have enough money for a larger down payment on your next home. How much equity you have is also determined of course by the amount of your mortgage payments and the time you have left to pay off your mortgage, and what your home is worth.
You build equity as you pay your mortgage loan down. So how much equity is enough equity when it comes to selling your house? In order to figure this out, you must make sure to take several things into consideration.
Selling Your House
If you want to sell your home, you’re going to need to think about things like a new home, which means analyzing home prices, mortgage rates, interest rates and how much of a down payment you need to have. Sales costs can be a lot of money, as there are also closing costs, moving costs and real estate agent commissions. The sales price of your current home and the sale price of a new home largely depend on home sales in the area and trends in the market at the time. To know how much equity is enough equity, you need to know if you can get enough money from the sale price of your house to turn enough of a profit to do everything you need to do.
Real Estate Agents
Real estate agent commissions can be steep, especially with all the other costs you’re going to need money for. This
leads to the question of whether you should use a listing agent to assist you with your home sale or not. Though this is a personal preference, most sources say to use one, they’re worth it. Certainly they have value, but how essential is it to have one if you know you’re really going to need as much cash as possible?
Real estate agents get around 6% of the sale price, so if you sell a $200,000 home, that means $12,000, which is quite significant – that listing agent better be really good! In fact, for an agent to be worth the money, he or she should be the kind of real estate agent that does everything for you, sells it in record time, and gets you significantly more than your sale price. Listing agents vary greatly of course, and you can choose to switch if one isn’t getting results for you.
Opportunity Knocking?
A great job opportunity is one of the many reasons you may decide to sell your house before you have as much equity in it as you’d like. One you’ve never been able to find in the area you’re in, and that the money they’re offering is great. The only problem is that there’s a limited time it’s available, so if you want to take advantage of it, you’re going to need to make your move quickly. This is called “opportunity knocking at your door”, and it may only happen once. Have you considered cash home buyers?
Sell Your House Fast Las Vegas
Here at Sell Your House Fast Las Vegas, we can help you get to where you need to be! We never charge any hidden fees or commissions for our services, and you have nothing to lose by getting a free, no obligation cash offer for your home today. We even pay all closing costs, legal fees and any other charges associated with your home sale, giving you more cash in your pocket for your new start. The process is easy, you just fill out the short form right here on our home page! Someone will contact you to set up an appointment to see the property, and will make you a cash offer then.
Plus, we take houses in any condition, and you could have your cash within 2 weeks or less! We want to help you make your dreams come true. So when you need to sell your home fast and you need cash, remember Sell Your House Fast Las Vegas. Make a profit on your home sale and pursue your dreams, with a little help from SYHFLV.
