If it’s been years since you checked your home’s value, the numbers today may change how you think about your options.
What if the biggest financial asset you own is doing far more for you than you realize? Many homeowners know their home has increased in value, but very few understand how much equity they’ve actually built over time. If it’s been years since you last checked your home’s value, the number today may be far more meaningful than you expect.
Before getting into what that equity could mean for you personally, it helps to understand how equity builds and why so many homeowners underestimate it.
Why home equity grows faster than most people realize. Home equity grows in two ways. First, your home’s value increases over time. Second, every mortgage payment reduces the loan balance. When appreciation and principal paydown work together, the results can be substantial.
According to data from Realtor.com, homeowners who purchased a median-priced home have built significant equity over time. A homeowner who bought in 1995 at $114,600 may now have approximately $435,300 in total equity. Someone who purchased in 2005 at $229,000 could be sitting on about $336,417 in equity today.
Even homeowners who bought in 2015 at $236,300 may already have around $284,736 in equity. Many homeowners sense their value has grown, but these numbers often come as a surprise when they see them clearly laid out.
What that equity could mean for your life. Equity is not just a number tied to your home. It represents options. That value could help you move into a newer or larger home that fits your current needs, relocate closer to family, or support long-term plans such as education or retirement. Even if selling is not something you are considering right now, knowing your equity helps you see opportunities that might be available to you.
Why most homeowners lose track of their home’s value. Many homeowners only think about value when they are preparing to sell. Over time, that leads to outdated assumptions. Markets change, neighborhoods evolve, and appreciation does not always feel dramatic year to year. Without regular updates, homeowners often underestimate their most valuable asset.
Staying informed without pressure. Knowing your home’s value does not mean you need to make a move. It simply means you are informed. A current market analysis helps you understand where you stand today so you can make decisions on your timeline.
If you want an updated estimate on your home, the Tami Holmes Realty team is happy to provide a personalized market analysis. You can call (937) 506-8360, email vip@tami-holmes.com, or visit https://www.tami-holmes.com. Staying informed about your home’s equity puts you in control of your next move, whenever that moment comes.
