Highlights

Understand the power of homeowner tenure.

Witness your home’s value soar with time.

Learn how equity can shape your future moves.

Expert insights from real estate agents.

Owning a home is more than just having a place to live; it's an investment that grows over time. Many homeowners are surprised to learn just how much equity they've accumulated in their homes over the years.

But what exactly is home equity, and how does it grow?

Let's dive into the details with some simple words and helpful insights from real estate agents in Chicago, Illinois.

Home Equity: A Quick Overview

Home equity is the portion of your property that you truly "own." Think of it as the difference between the market value of your home and what you still owe on your mortgage.

As you pay down your mortgage and as your home's value increases, your equity grows. It's like a savings account that grows without you having to do a thing!

The Impact of Homeowner Tenure

One crucial factor affecting your equity is how long you’ve lived in your home, or your "homeowner tenure." In the past, people typically moved every six years.

Nowadays, the trend has shifted, with many staying in their homes for around ten years or more. This change is significant because the longer you stay, the more your equity builds up.

Every mortgage payment you make and every year that passes with the property value increasing, your stake in your home's value grows.

Price Appreciation Over Time

Another key element is how home prices appreciate over time. Even though real estate markets fluctuate, the general trend is upward.

For instance, homeowners who've stayed in their homes for five years might see their value increase by nearly 60%.

And for those who've been in their homes for 30 years?

The value could more than triple.

That’s a huge increase, turning your home into a valuable asset.

What This Means for You

So, why does all this matter? Well, your home's equity can significantly impact your life choices, especially when it comes to making big decisions like downsizing, relocating, or simply moving to be closer to loved ones.

Your accumulated equity could be the key to your next dream home or to finance other major life goals.

But, how do you know exactly how much equity you've built up? That's where professional real estate agents in Chicago, Illinois, come in.

They can provide you with a detailed analysis of your home’s current market value compared to your remaining mortgage balance, giving you a clear picture of your equity.

Moving Forward with Your Equity

If you're curious about your home's equity and considering your next steps, connecting with knowledgeable Realtors can make all the difference.

They can guide you through the process of evaluating your options, whether you're thinking about selling your home to cash in on that equity or leveraging it towards purchasing your next property.

Bottom Line: Real Estate Experts Saying

Your home is more than just a living space; it's a financial cornerstone. Over the years, as you've lived, laughed, and maybe even cried within its walls, your home has been busy working for you, increasing in value and growing your equity.

Understanding and tapping into this equity could open new doors for your future.

Interested in exploring your home's equity further? Reach out to a trusted real estate agency or agent in your area. Their expertise can provide you with the insights you need to make informed decisions about your home and your future.

This simplified guide sheds light on the concept of home equity and its significance over time. By considering factors like homeowner tenure and price appreciation, it illustrates how your home can become a substantial financial asset, guiding important life decisions and future investments.

If you plan to sell your house and move, you probably know there’s been a shortage of options. But here’s the good news: the supply of homes for sale has grown in many markets this year — and that’s not just existing or previously owned homes. It’s true for newly built homes, too.

So, how do you decide which route to go?

Do you buy an existing home or a brand-new one? The choice is yours — you must determine what’s most important.

Perks of a Newly Built Home

Here are some benefits of buying a newly built home right now:

Have brand new everything with never-been-used appliances and materials

Use energy-efficient options to save money and leave a smaller footprint

Minimize the need for repairs and benefit from builder warranties

Take advantage of builder concessions that can help with affordability

In today’s market, many builders are focusing on selling their current inventory before they add more homes to their mix. Some of them are offering concessions and are more willing to negotiate to make a sale happen.

That, coupled with the fact builders are primarily building smaller, more affordable homes, has led to one other potential perk. The median price for a newly built home in today’s market is lower than that of an existing home — which isn’t usually true. Ralph McLaughlin, Senior Economist at Realtor.com, shares:

“Homebuyers who are looking for that ‘new-home smell’ may be in a relatively friendlier market than times past when new homes were considerably more expensive than used ones.”

If you’re interested in seeing what builders nearby have to offer, lean on your real estate agent. Their knowledge of local builders, new communities, and builder contracts will be important in this process.

Perks of an Existing Home

Let’s compare that to the benefits of buying an existing home.

Join an established neighborhood that you can get a feel for before moving in

Choose from a wider variety of floorplans and styles

Appreciate the lived-in charm that only an older home can provide

Enjoy the privacy and curb appeal of mature trees and landscaping

In addition to these lifestyle benefits, there’s strategic value to buying an existing home, too. Remember, you can upgrade an existing home to include some of the latest features. This gives you the best of both worlds: you’ll get the charm and the neighborhood, and over time, you can still add those on-trend elements you may see in a brand-new home. And if you do, you’ll likely increase the home’s value too.

An article from LendingTree explains:

“. . . they can personalize it and possibly increase its potential resale value with cosmetic upgrades . . . Plus, if a home comes with physical details or stories that add charm, in some cases, these elements are attractive enough to add to a home’s resale value . . .”

Want to see what’s available? Your real estate agent can show you homes for sale in your area so you can decide if one fits your needs.

Bottom Line

There are many factors that go into deciding whether to buy an existing home or a newly built one after you sell, but it’s essential to understand the opportunities you can find in both in today’s market.