Do You Really Know What Your Home Is Worth? Discover How Much Equity You’re Sitting On

When was the last time you checked the real value of your home? If you’re like most homeowners, probably not recently. And here’s the thing—your house is likely your biggest financial asset, yet many people overlook it when assessing their wealth.

Here’s the reality: if you’ve owned your home for a few years (or more), it has probably been building wealth for you quietly in the background. Even with shifts in the housing market, your property may be worth a lot more than you think. So let’s break it down in simple terms.

What Exactly Is Home Equity?

Think of home equity as the hidden treasure buried in your backyard. It’s the difference between what your house could sell for today and what you still owe on your mortgage.

For example, imagine your home is valued at $500,000, and your remaining loan balance is $200,000. That means you have $300,000 in equity. Pretty impressive, right?

According to a recent report by Cotality, the average homeowner with a mortgage has around $302,000 in equity. That’s wealth you may not have realized you were sitting on.

Why Your Equity Is Likely Higher Than You Think

Two major factors have contributed to homeowners reaching record levels of equity:

1. Home Prices Have Skyrocketed

Data from the Federal Housing Finance Agency (FHFA) shows that home prices have risen nearly 54% nationwide over the last five years.

Translation? If you purchased your home years ago, it’s very likely worth much more today. Even if home values in your area are leveling off or dipping slightly, long-term ownership still means you’re coming out ahead.

2. People Are Staying in Their Homes Longer

The National Association of Realtors (NAR) reports that the typical homeowner now stays in their house for about 10 years. That’s longer than in previous decades.

And what happens over 10 years? You pay down a big chunk of your mortgage while your property value increases. The result? Equity growth that can seriously boost your net worth.

To put it in perspective, NAR found that:

“Over the past decade, the typical homeowner has accumulated $201,600 in wealth solely from price appreciation.”

That’s like a hidden savings account working for you, without you even noticing.

What Can You Actually Do With All That Equity?

Here’s the exciting part: your equity isn’t just a number on paper. It’s a financial tool you can leverage in smart ways. Here are a few possibilities:

Buy Your Next Home

Equity can serve as your down payment—or in some cases, even allow you to purchase your next home in all cash. That puts you in a strong position when making offers in a competitive market.

Renovate and Increase Value

Want a bigger kitchen? Need an extra bedroom? You can use your equity to renovate your current home so it better fits your lifestyle. Bonus: the right upgrades may add even more value if you decide to sell later.

Fund Your Dream Business

Always wanted to start your own business? Your home equity could be the seed money for your startup. Whether it’s equipment, software, or marketing, tapping into your equity could be the boost that transforms your idea into reality.

Why Checking Your Home’s Value Regularly Matters

Your equity isn’t static—it changes as the housing market shifts and as you pay down your mortgage. That’s why it’s important to keep an eye on it, just like you would your savings account or investment portfolio.

Think of it this way: ignoring your equity is like leaving money in a locked vault and forgetting where you put the key. Checking your home’s value regularly ensures you know what resources you have available when making major financial decisions.

Bottom Line

Your home is more than just a roof over your head—it’s a wealth-building machine. And if you’ve been in your house for several years, chances are it’s worth significantly more than when you bought it.

So, do you really know how much your home is worth today? Don’t leave it to guesswork. Get a professional equity assessment and discover how much financial power you truly have.

Because here’s the truth: your home might just be the biggest opportunity you didn’t even realize you had.