What is ||Home Equity||
Home equity is the value of ownership built up in a home or property that represents the current market value of the house less any remaining mortgage payments. This value is built up over time as the property owner pays off the mortgage and the market value of the property appreciates.
- The equation is not complicated. The vital component is arriving at an accurate market value for your home.
In general, personal equity or net worth is the difference between the value of all your assets that have a cash value and the amount you of outstanding debt to owe to someone or an institution like the bank. A simple example, if own a car worth $20,000 but still owe the bank $5,000 on the car loan, the car represents $15,000 in equity. Equity can be negative if you owe more than you have in assets.
The Current Value of your Home
The value of a property is determined by a number of different criteria, each of which can influence how much your home is currently worth. These criteria range from the square footage and the age of your home, to its location,construction quality, architectural features and even the number of bathrooms.
It is important to remember that a property valuation is not a fixed or permanent number. It is simply a snapshot of what your home is worth today, in relation to current market conditions and what other, similar properties are selling for. This value can change over time based on improvements to the property, as well as changes in your neighbourhood and the overall housing market.
- Your real estate sales representative will be able to provide extensive research into the value of homes, comparable to yours, that have sold recently and in the past. Just as important comparable homes that have not sold and their asking price. This will help you determine an educated valuation of your home and allow for an accurate determination of your equity in your home.
As Your realtor,
I will provide the trusted, transparent, thorough and timely service that you would expect and deserve in dealing with your critical real estate assets.
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Please contact me at firstname.lastname@example.org or 905-632-2199 my RE/MAX Escarpment Office.