As realtors here in Ukiah, we’re often asked, “How do we measure our equity?” After all, this is a huge determining factor in whether to sell and move on to your next home!

As you weigh your options, you may find that you’re unsure about how to deal with a major aspect of today’s housing market: affordability. (We know — things are a little spooky out there, huh?)

If the equity in your home will help you make a decision, then we want to let you know two key elements that we explain to each of our clients…

First, the time spent in your home is the biggest factor. The thing is, you gain equity as you pay down your home loan and as home prices climb. When you combine how long you’ve lived in your house with how much prices have gone up in the last decade, it gives you a sense of how much equity you have in your property.

Second, home prices appreciate a little differently over time. They vary depending on where you live, but according to data from the Federal Housing Finance Agency, if you’ve lived in your home for 30 years, it has likely tripled in value! In essence, there’s a massive difference between living in your house for ten years and living there for multiple decades. Equity loves commitment.

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

Of course, if you have more questions about what your home is worth, don’t hesitate to reach out. We’ve helped 30+ clients sell their homes this year, and you learn a thing or two by talking to that many people.