A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” The article then goes on to soften that stance but we want to bring better clarity to the equity situation.
A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)
If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”
Here is a map showing the percentage of homes in each state which currently have significant equity:
Thoughts on Homeowner Equity
If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, contact a local real estate professional who can help you determine if now is the time to list.
When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles along the way. However, for the vast majority of sellers, the most important result is actually getting their homes sold.
In order to accomplish all three goals, a seller should realize the importance of using a real estate professional. We realize that technology has changed the purchaser’s behavior during the home buying process. According to the National Association of Realtors’ 2016 Profile of Home Buyers & Sellers, the first step that “…44% of recent buyers took in the home buying process was to look online at properties for sale.”
However, the report also revealed that 96% of buyers who used the internet when searching for homes purchased their homes through either a real estate agent/broker or from a builder or builder’s agent. Only 2% purchased their homes directly from a seller whom the buyer didn’t know.
Buyers search for a home online but then depend on an agent to find the home they will buy (50%), to negotiate the terms of the sale (47%) & price (36%), or to help understand the process (61%).
The plethora of information now available has resulted in an increase in the percentage of buyers who reach out to real estate professionals to “connect the dots.” This is obvious, as the percentage of overall buyers who have used agents to buy their homes has steadily increased from 69% in 2001.
What we’d like you to take away –
If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.
Welcome to 16201 Ginger Avenue in Mead. This home features 3 bedrooms and 3 baths in Mead’s popular neighborhood of Western Meadows.
You will agree this home is spotless and shows as such with it’s clean and tidy set up.
On the main level you will find wood flooring, vaulted ceiling and an oversized master bedroom suite with large walk-in closet. The laundry room, complete with folding table, is also located on this level.
The lower level features a generous family room that walks out to a large patio. Enjoy the beautiful Colorado mountain views that we love so much, from the patio.
Additional features include a spacious 3-car garage and an unfinished basement ready for you to put your own touches on.
This home has fantastic curb appeal, beautifully manicured landscaping and a private fire-pit area – perfect for year around use!