Equity

Equity is one of the most important financial benefits of owning property because it represents your real ownership stake. As your property value rises or your mortgage balance falls, your equity grows. Homeowners often use equity to upgrade to a larger property, fund renovations, invest in additional real estate or refinance for better loan terms. When selling, the level of equity you have directly affects how much profit you will pocket at settlement, once the mortgage is paid out. A strong sale price can significantly increase your usable equity which creates greater financial freedom and more options for your next purchase. Conversely, selling for less than market value limits your equity and can restrict your ability to move forward. A skilled agent plays a major role in boosting equity by positioning your home strategically, attracting qualified buyers and negotiating aggressively.

Practical Example

You purchased your home several years ago for $700,000 with a mortgage of $550,000. Over time, you paid down your loan to $420,000 and the market increased, raising your property’s value to around $1 million. When you decide to sell, your agent launches a strong campaign that attracts multiple offers. The home ultimately sells for $1.08 million which is higher than you expected. After repaying your mortgage and covering selling costs, you walk away with a substantial amount of equity. That equity becomes your deposit for your next home, giving you more buying power and flexibility in choosing where you want to live.