We know we talk about home equity a lot and for good reason! Owning a home is one of the quickest ways to build your wealth. In fact, according to the latest Homeowner Equity Insights Report by CoreLogic, in the second quarter of 2021, the average homeowner gained about $51,500 in equity during the past year.
Additionally, now is a great time to sell, with the average home receiving 3.7 offers in today’s market according to the National Association of Realtors (NAR). This means that buyers will likely find themselves in a bidding war for the home they want to purchase, which will drive up the home price and get you more for your home. Along with the price, you’ll also be in a position to get better terms, allowing you to have more power over the home sale.
So, what can you do with that equity? That options are endless, but we wanted to call out some of the top options that you can put that equity into!
Upgrade To Your Dream Home
Now is the perfect time to cash in and upgrade to your dream home! Maybe over the past year, you’ve realized that you need more space due to staying at home more often. Maybe your family has grown and you need a larger home. Or, maybe you have too much space and are looking for something that’s lower maintenance. If you’ve been hoping to make a change, there’s no doubt that you have built equity in your home that will allow you to do just that.
Make A Move To Your Dream Locations
With remote work options increasing, you may have the perfect opportunity to make a move to that place you’ve been dreaming of. If you’ve been hoping to move to the beach, or to the mountains, now is the best time to do just that!
Start A Business
Have you ever thought about starting a business? Maybe it’s a thought that’s crossed your mind at some point but you were left wondering how on earth you would get the funds to get going. Well, according to U.S. Small Business Administration Office of Advocacy, an estimated 31.7 million small business owners started their businesses with what they had in equity. So go ahead and open that coffee shop, that consulting firm, that Etsy shop - you have options!
Fund an Education
Maybe your kids are getting ready to head off to college or you’re interested in pursuing higher education, your home equity can actually help! Using a portion of your home equity to help with these costs can help take the burden off of your shoulders and still allow you to pocket some extra cash for future investments.
Owning a home opens you up to a world of possibilities and allows you to build your own wealth for future investments. By owning in this past year alone, your equity has likely grown to a point where you now have different options for where you want to put those additional funds. Additionally, the current market conditions allow you to get the most money for your home on the terms that you’re comfortable with. If you want to take the next steps and cash in on your built-up equity, give us a call! (978) 320-3377