Interesting read today from CNBC. But it's not really a huge surprise to us...we meet homeowners every day who think that they can't afford to sell their Denver Metro area home because they don't have enough equity. Most of the time, they are really shocked at how much money they will earn when they sell - no matter what condition their property is in, or where it's located.
Are you one of the millions of homeowners who think that they know what their house is worth, but actually have way more equity than you think?! Even if you have only owned your Colorado home for a year or two, it's likely worth WAY more than you paid for it.
From CNBC:
Despite three years of a solid recovery in home prices, a surprising number of homeowners don't realize what they've gained.
Most underestimate what their home is worth and, consequently, the amount of home equity that they could draw upon. Even more striking, just more than half of homeowners with a mortgage don't expect to gain any equity in 2016, despite rising home prices. It may be why home equity lines of credit are far less popular today than they were even before the housing boom.
"Homeowners who bought during the housing boom are regaining equity many thought was lost forever, yet too many are not aware of the equity they have gained or they are unclear about how to determine changes in their equity," said Bryan Sullivan, chief financial officer at loanDepot, an independent, nonbank lender.
Fifty-seven percent of homeowners said they believe their home value has improved in the last three years, but the majority, 80 percent, underestimated the amount of value it has gained, according to a new survey conducted by Omniweb and commissioned by loanDepot. The survey was based on interviews with 1,000 borrowers, split evenly between men and women.
More than a quarter of those surveyed, who do believe their homes have gained value, said it had increased between 1 and 5 percent since 2013. While that may be the case in certain local markets, nationally home values have gained about 10 percent in that time, according to the S&P/Case Shiller Home Price Index.
Read the rest of the article here.
Still not convinced that you have a ton of equity in your Denver area home? Let's check it out!
Sure, you could use one of the many online property valuation tools --BUT, just know that those fancy little tools only knows the things about your home that are public record - it doesn't know that you if you have an awesome view, epic block parties, recently remodeled basement or a bright + shiny new kitchen or bathroom. So take all of that info with a grain of salt, and contact us for a detailed property analysis.If you're thinking about selling or refinancing, you need more information than an algorithm can provide!
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