Homeowners Are Sitting On More Equity Than They Think

How Much Is Your Home Really Worth?
Do you actually know what your home would sell for in today’s market? Not what you hope it’s worth, but what a real buyer would be willing to pay. Most homeowners don’t know that number, and that’s completely normal. Here’s the key point, many people are sitting on far more equity than they realize.

Why Equity Matters More Than You Think
The average American homeowner has over $300,000 in equity. In some cases, it’s much higher. Markets like Charleston saw years of strong, double-digit appreciation. Even though things have cooled recently, that growth didn’t disappear. It’s still there, sitting in your home.

But here’s the issue. Equity sitting in your home isn’t doing much unless you put it to work.

Ways to Put Your Equity to Work
Some homeowners are starting to take action. They’re using their equity in smarter ways:

• Opening a Home Equity Line of Credit (HELOC)
• Paying off higher-interest debt
• Funding large purchases without traditional loans
• Taking advantage of potential tax deductions on interest

A HELOC can give you flexibility, often with better rates than unsecured loans. But it still needs to be used carefully. Not every expense should be tied to your home.

Selling and Reinvesting for Higher Returns
Others are taking a bigger step. They’re selling, unlocking their equity, and reinvesting it.

Right now, home appreciation in many areas is around 2% to 3%. That’s stable, but not impressive. Compare that to other investment options returning 10% to 12%, and the gap becomes clear.

One example: a homeowner in Mount Pleasant had about $1.3 million in equity. They sold, bought a home in Summerville, fully set it up, and still had around $1 million left. They invested that money and shifted from earning roughly $30,000 a year in appreciation to over $100,000 annually.

That’s a big difference. But it also comes with risk. Market investments are not guaranteed, and timing matters.

The Reality Most Sellers Miss
A lot of people guess their home’s value. But guessing doesn’t help you make good decisions. What matters is what buyers are actually willing to pay today.

That’s where competition comes in. When multiple buyers are interested, the price usually goes up. And that’s how you get closer to true market value.

How to Find Out What Your Home Is Worth
There are ways to test the market without a long process or commitment. One approach is creating real buyer demand and getting multiple offers quickly. That gives you a clear picture of your home’s actual value.

If you’re even a little curious, it’s worth looking into. At the very least, you’ll walk away with real numbers instead of guesses.

Visit www.davefriedmanteam.com, click the links below or call us at (843) 972-3833.