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KT Las Vegas Homes
  • Home
  • About
  • Home Search
  • Selling
    • Thinking about selling your home in Las Vegas?
  • Buying
    • Buyer Guide
      • Utilities
      • Residential Disclosure Guide
    • FAQs
      • Real Estate Terms Lookup
    • New Homes
    • Moving Checklist
    • Mortgage Calculator
  • Communities
    • Anthem
    • Centennial Hills
    • Central Las Vegas
    • Enterprise
    • Green Valley
    • Henderson
    • Las Vegas Country Club
    • North Las Vegas
    • Paradise
    • Skye Canyon
    • Spring Valley
    • Summerlin
    • Sunrise Manor
    • Whitney
  • Contact
  • Register / Sign in

Follow us

  • facebook
  • instagram
  • youtube
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Equity

A

Equity

One of the major advantages of buying over renting. Equity is the investment a homeowner has in their home. To calculate equity, take the market value of the home and subtract any mortgages or liens against the property. The amount leftover is the amount of equity you have in the home.

If you buy a home worth $250,000 for $240,000, you gain what is known as instant equity, because there is a $10,000 difference between the value and the cost. When you sell a home you bought for $250,000 for $260,000, you’ll get to keep the equity in the home after the close, once all the expenses are paid.

It’s important to build equity as homeowners can leverage this financial asset to obtain loans to help finance items such as home repairs, or to pay off higher-interest debt.

Category: Real Estate Terms
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