"How do I measure the equity in my home?"

As an award-winning Realtor in Yorktown/Williamsburg, I often get asked, “How do I measure the equity I have?” It’s a huge determining factor in making a selling decision and getting into your next home!

And as you weigh your options, you may find you’re unsure how you’re going to deal with one thing about today’s housing market—and that’s affordability. If the equity in your home helps you make a decision, I want to let you know:

Two key elements of estimating home equity:

1. How long you've lived in your home. This is the biggest factor. Here’s the thing: You gain equity as you pay down your home loan AND as home prices climb. When you combine how long you’ve been in your home and how much home prices have gone up in the last decade, it gives you a sense of how much real equity you have in your home!

2. How home prices have appreciated in your area. Appreciation happens a little differently over time, with prices varying based on where you live. But according to data from the Federal Housing Finance Agency, if you’ve lived in your home for 30 years. your home has likely tripled in value! There’s a huge difference between being in your home for 10 years and being in your home for multiple decades.

Whether you’re looking to downsize, relocate to your next dream home, or move so you can live closer to family, the equity in your home can be a huge benefit. Hopefully you found these basic measurements helpful!

If you have more questions about what your home is worth, don’t hesitate to reach out. I've helped 47 clients this year sell their homes—you learn a thing or two by talking to that many people.