The past 2.5 years of the COVID-19 pandemic have created financial strain on countless individuals. For many, this has made paying down a once manageable mortgage a huge burden. For others, the pandemic brought a fresh perspective and has inspired relocation and a new approach to work/life balance. Whether you’re reevaluating the personal affordability of your current home, need to relocate soon, or you’re just ready for a new place and don’t want to lose out on the home equity you’ve built, it’s important to know how to turn your home’s equity into cash.

## Sweat Equity + Home Equity

“Blood, sweat, and tears” is an often overused phrase, but in the case of homeownership, it can’t be overstated. [Sweat equity](https://www.investopedia.com/articles/mortgages-real-estate/08/diy-home-projects.asp) is a huge element of homeownership! You’ve invested time, money, and care into your home, and you deserve the very most in return for that hard work. That’s why understanding how to turn your [home’s equity](https://www.corelogic.com/intelligence/homeowner-equity-insights/) into cash is essential knowledge for homeowners in 2022. The difference between the current market value of your home and the amount you still owe on your mortgage + other debts secured by the home is your home equity. Simply put, equity = market value - the amount owed. 

Selling a home with equity allows you to keep the difference once all closing costs have been paid. That cash can be used for purchasing a new home, relocating, renting a home, paying down other debts, or even just saving! A qualified realtor or appraiser can help you figure out your home’s most accurate current market value, or submit your home to Taida Corp for an offer to see what it is worth. Ideally, you should have 10+% in equity if you’re relocating, and at least 15% if you’re hoping to purchase a larger home. The more the better. 

## Sale Price

Your sale price needs to [pay for your existing mortgage](https://www.knowyouroptions.com/avoid-foreclosure-overview/options-to-leave-your-home/selling-a-home-with-equity), all closing costs, and cover at least a portion of the down payment on a new home if buying again is what you have in mind. In a perfect world, you’d have enough equity to cover all state, local, and federal taxes, moving expenses, attorney fees, any other expenses you don’t want to pay out of pocket, and still have a decent chunk left over for your next house. Selling with equity is still an option for individuals whose mortgages are currently in mortgage forbearance or have received relief such as loan modification, or payment deferral. Those who are still paying down [home equity](https://www.fanniemae.com/here-help-homeowners/here-help-selling-equity) loans can take advantage of selling with equity, too! In any case, you’ll be responsible for the full amount owed, and maximizing cash offers is important. 

According to a [CoreLogic study](https://www.corelogic.com/intelligence/homeowner-equity-insights/), 2021 showed an average equity growth of [31% for homeowners](https://www.homelight.com/blog/what-is-home-equity/), and that’s good news if you need to turn your home’s equity into cash this year! The widespread rising property values in the housing market can be extremely beneficial to homeowners who need to sell. Investing in value-added renovations or aesthetic improvements recommended by a professional is another great way to optimize your take-home cash by increasing your home’s equity. Even very small things like adding gardening boxes in the front yard or painting the front door can add property value and increase cash offers if major renovations aren’t financially possible.

## Steps Towards Getting Those Cash Offers

The first step toward turning your home’s equity into cash is [getting your home appraised](https://www.taidacorp.com/contact). A professional home-buyer or appraiser can provide the details, numbers, and insight needed to maximize your potential take-home cash. If you want something less formal, submit your home to Taida Corp for an offer and we can tell you what your home’s current value is! By following thoughtful professional advice and acting strategically with the sale of your home you can move onto the next stage of your life, and walk away with an incredibly helpful amount of cash. With the right team in place turning your home’s equity into cash can be easy breezy!

Whether you’re reevaluating the personal affordability of your current home, need to relocate soon, or you’re just ready for a new place and don’t want to lose out on the home equity you’ve built, it’s important to know how to turn your home’s equity into cash.


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How to: Turn Your Home's Equity into Cash

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