Your home equity is approximately the property's current market value minus the amount you still owe on mortgages and other liens. To estimate how much money you could actually use after selling, you also need to subtract commissions, closing costs, taxes, repairs and other selling expenses.
Local Data Points
- Current Wilmington median sales price: $459,680 (per active residential real estate listings in Wilmington, per HiveMLS)
- Typical list-to-sale ratio: 95.95% (per sold residential real estate listings in Wilmington YTD, per HiveMLS)
- Typical seller closing costs/expenses: Seller closing costs usually consist of professional fees, debt settlement and local taxes and fees. Your REALTOR® is able to assist in shopping professionals as well as providing a fee breakdown before listing.
Basic Equity Calculation
Estimated market value
− Mortgage balance
− Other liens
= Gross equity
Then:
Gross equity
− Selling expenses
= Estimated net proceeds
For example, a $600,000 home with a $300,000 mortgage doesn't necessarily put $300,000 in the seller's pocket.
What Can Change the Number?
Your actual proceeds may be affected by:
- Mortgage payoff
- Home equity loans
- HELOCs
- REALTOR® compensation
- Attorney/title fees
- Repairs
- Seller concessions
- Property taxes
- Prorations
- Outstanding liens
Wilmington-Area Difference:
Coastal homeowners may have substantial appreciation but also face additional considerations involving insurance, repairs, flood exposure and buyer demand.
A home worth more on paper doesn't necessarily mean all of that appreciation becomes cash at closing.
FAQs
How do I know what my home is worth?
A current comparative market analysis is a better starting point than simply looking at your tax value or an online estimate.
Can I use my equity to buy another house?
Potentially. Your lender can determine how your equity affects available financing.
Does home equity count as cash?
Equity is an asset, but it generally becomes usable cash when you sell, refinance, borrow against it or otherwise access it.
BlueCoast Local Perspective
Your Zestimate isn't your equity. Your tax value isn't your equity. And your neighbor's sale isn't your equity.
Start with today's likely market value. BlueCoast can help estimate your home's current value and potential net proceeds before you make your next move.