What Happens to the Equity in My House When I Sell?

It’s a question that many homeowners begin to ask whenever the question of selling comes up. But to understand what happens to your equity when you sell, it helps to understand a few other things first. For one thing, you may have heard your equity matters, but not fully understand what it is. We’ll take a look at some of the common questions surrounding the topic and try to paint a clear picture. So for anyone looking through Zillow and wondering, “What happens to the equity in my house when I sell?” we’ll get there. But first, we need to look at what details matter in the concept of home equity.

Let’s Define Equity

While not too complicated of a concept, home equity is something you may not know about until you have to deal with it directly. Bankrate defines home equity as, “the appraised value of your home minus any outstanding mortgage and loan balances.” Basically, it’s the percentage of ownership you have of your home.

What is the Average Equity in a Home?

First, let’s take a look at some peripheral numbers. For instance, CoreLogic reports that by the end of Q1 in 2020, the average American saw their home equity rise by $9,600 from 2019. These are some substantial gains.

Referencing Harvard’s Joint Center for Housing Studies 2019 report, HousingWire relates that the national aggregate for housing equity more than doubled from 2011 to 2018. It also reveals what the average equity in a home is for Americans four years ago: “In 2016, 86% of homeowners had at least 20% of their home’s value in equity, while 61% had at least 50%.”

And with the pandemic-era housing market proving a strong one for homeowners, those numbers are likely to keep rising by the day. So what is the average equity in a home for Americans right now? Impressively high.

“In 2016, 86% of homeowners had at least 20% of their home’s value in equity, while 61% had at least 50%.”

As a direct cash buyer, Upward Home Solutions deals with home equity all the time. We think it’s important for homeowners to be educated on what affects them during a sale. For instance, say someone has just 25% equity in their house. In that situation, selling probably isn’t going to be in both parties’ best interest for now.

In order for us to create a win-win scenario in buying a home, we typically look for a homeowner to have at least 40% equity in their home. It’s rare that we can make the numbers work for someone with less than that. For reference, a person can typically expect to see 40% equity around the 8-10 year mark of paying on a home mortgage. 

What happens to the equity on a white, one-story house with garage when I sell?

What Other Things Can Affect Home Equity?

Of course, a variety of things can affect your home equity percentage. We won’t get into an exhaustive list here, but you can likely imagine many scenarios based on what we’ve covered so far.

If someone pays cash or inherits a house, for instance, they usually have 100% equity or close to it. Big down payments will help increase your home equity as well. Taking out a second mortgage, on the other hand, will decrease your equity. You get the idea: assuming a stable market, the more you’ve paid into your home, basically, the higher your equity.

So What Happens to the Equity in My House When I Sell?

The short answer is that when you sell your home to a cash buyer or personal buyer, that’s the moment your home equity becomes a real, defined number. It sort of exists in a theoretical space until that point. Sound a little abstract? Well, it kind of is! Let me explain.

Actually, theoretical presale value is not an uncommon thing at all, although it may sound that way at first. It’s not dissimilar from the way we value many items in our society. A work of art, for instance, might have an expected going price. But in reality, it’s true worth is determined by what a buyer is willing to pay.

Home List Prices

Similarly, your home has a price attached to it, but it isn’t a definite price. My sister loves watching HGTV. She also pores over home listings and goes on websites like Zillow to see how much her favorite homes are worth. But if she wanted to evaluate home equity, she could only expect to get an educated estimate, given all available information.

Of course, the condition of a house also factors in. Say yours were valued at $100,000 when you bought it, then you threw a wild party — put holes in the walls, burnt the carpets, etc. — and then turned around to sell it as-is. It’s pretty obvious you should expect less money. But if this scenario were true, it could be a great opportunity to sell to a cash buyer. We literally take homes in any condition because we specialize in restoring individual houses and revitalizing neighborhoods. But even if a home has been well-maintained and not renovated in any substantial way, home equity will still only be technically determined at the time of closing. While you own your home, its list price is really just a good estimate.

So Should I Just Ignore List Prices?

No way! You’ll remember that I mentioned before how we typically only work with owners whose home equity is above 40% here at Upward Home Solutions. A list price is a very valuable thing to keep an eye on for direct buyers like us and for homeowners as well. It’s jsut important to remember that the final value is technically fluid until set in the concrete of a closed sale.

For this reason, when you sell, stabilizing your home’s value for that moment, this will set your home equity dollar amount in stone.

An Example of What Happens to the Equity in My House When I Sell

Let’s say I sell for $200,000 on the nose, and I still owe $110,000 on my home mortgage. That puts my home equity at 45%. So I would walk away with $90,000.

The Bottomline on Home Equity in 2020

As the housing market continues to boom, your theoretical home value will continue to rise, taking your equity up with it. It’s great news for homeowners. It’s great news for us too because it makes it that much easier for us to provide win-win homebuying situations around Columbus. So what happens to the equity in my house when I sell it, you ask? You get that money.

If you’re interested in looking at your options, give us a call or stop by the Upward Home Solutions office in Powell. We’d love to chat and answer any questions you may have!

Selling a House During the Pandemic

If you’re wondering what is the best method for selling a house during the pandemic, Upward Home Solutions has a service to help you.

These are stressful and uncertain times. First and foremost, I’d like to extend our best to you and your family. Our top priority is promoting public health and safety. Together, we hope you are taking the necessary precautions along with us to stop the coronavirus in its tracks. 

selling a house during the pandemic of COVID 19

Unfortunately, the fear and fallout surrounding this pandemic are not confined even to our physical wellbeing. For many in our community, this situation is also a financial concern.

Many homeowners are realizing that finding a realtor and listing on the MLS has never been more difficult than it is right now.  When you list with a realtor, you are contracting with someone to help you sell your home. Upward Home Solutions works differently. We want to buy your home. We will give you cash for my house.

For homeowners, selling a house during the pandemic presents some unique problems. We buy your house.

Here’s some good news for homeowners:

Home prices remain strong despite a very volatile stock market. Equity in homes has never been higher. Selling real estate is still a viable option, despite it being difficult to find a realtor and go through that whole process for selling a house during the pandemic.

At Upward Home Solutions, we believe that now, more than ever, the first priority of any business should be to lift up its community. We understand the constraints that a tough market can put on a homeowner’s wallet. So if our services can help you with selling a house during the pandemic, we want to hear from you. 

selling a house during the pandemic is tough

What is the process of selling a house during the pandemic?

If you were counting on selling in the near future, you might be wondering how in the world to do that now. Many things have changed about selling a house during the pandemic.

Upward Home Solutions remains in a unique position to buy your home quickly. We can streamline the process and put cash in your hand when you really need it—no waiting on bank approvals or inspections. We’ll close on your timeline, in as little as a couple weeks. 

We are buying houses, and people are still selling a house during the pandemic. New procedures keep you and your family safe while eliminating stress and uncertainty.

Rental Properties

Many landlords have been watching governmental developments. Those relying on rental property income for their own bills may have trouble with the moratorium on evictions. The laws seem to change weekly. It’s a headache keeping up with all the new rules.

We get it. Selling a house during the pandemic is a tricky situation.

If you are a landlord and you’re wondering about selling a house during the pandemic, UHS is in a position to purchase property regardless of occupancy or lease status. We will assume your risk and all that goes with it. 

How we are adjusting our services for selling a house during the pandemic:

As mentioned above, health and safety remain priority number one. Thankfully, UHS is able to limit and do away with the need for close proximity as we fight the spread of this virus. When selling a house during the pandemic, you will want to be extra careful.

If you’re curious about your options with UHS, we’ll get you on a phone call with Amy, who can answer any questions you have and outline our process in more detail to help you with selling a house during the pandemic.

greetings when selling a house during the pandemic

After a quick greeting with Tim at your appointment, don’t be offended when he keeps his distance. We’re being very cognizant of health protocol. Tim’s car will remain stocked with hand sanitizer and wipes, and you have our word that he won’t go on any appointments if he or anyone in his family is feeling unwell. Tim always wears a face mask to every appointment.

Tim will take photos and videos of your house so that we can assess value without sending anyone else to walk through your property. However, we are also offering two alternatives to in-person appointments.

  1. We can make “curb offers” where we don’t even have to come into the house. 
  2. Homeowners can leave keys for us in a lockbox and we can go through when no one else is there. 
Tim Smith

As always, meeting with Tim and getting an offer doesn’t mean you have to sell your house to us. We would never pressure you into doing something that isn’t right for you. Our business has always been based on trust. Meeting with Tim simply gives you one more option that you didn’t have before for selling a house during the pandemic.

If you need a fast house sale, we can finish the purchase of your house in less than a week.

Homeowners do not even have to show up in person to the closing. 

We use digital signatures for the contracts and for closing documents. Recently, Upward Home Solutions purchased a home from a man who lives in the Caribbean. We never met the homeowner in person. Nonetheless, we were able to use a notary in his home country, digital signatures, and a wire transfer for payment.

At the end of the day, selling a house from a remote location is always difficult. Selling a house during the pandemic is even harder. Fortunately, Upward Home Solutions is an expert in non-traditional sales.

We’re In This Together

Stay safe, stay strong. If there’s anything our business can do to help you, please let us know. Selling a house during the pandemic is a unique situation. Nonetheless, we have many ways to help.

We built Upward Home Solutions on a belief in community and on finding ways to serve ours. If we can help in your situation, please let us know.    

Amy is ready to answer your call. She will explain our process for selling a house during the pandemic.


The Team at Upward Home Solutions

More About Upward Home Solutions

Upward Home Solutions has been helping homeowners since 2005. We have bought hundreds of houses in Columbus, OH. If you want to sell my house fast, there’s no company with more experience and professionalism. UHS is Central Ohio’s #1 company for buying homes from people who are selling a house during the pandemic.

Maybe you have seen the “we buy houses” signs. That’s not us. Our business is built on relationships. Our best source of houses comes from referrals.

You can read reviews from happy clients.

Selling a house during the pandemic is safest with Upward Home Solutions. So if you’re wondering, How can I sell my house online? we’re here to help.

We specialize in difficult situations. Realtors are wonderful, but they aren’t right for everyone. When selling a house during the pandemic, selling to cash buyers like Upward Home Solutions may be your best option.

My situation is unique

We work with homeowners in unique situations everyday. Tim S is amazing when with working with families or couples who disagree on what should be done with the home.

UHS buys inherited houses that are in probate. We can help with the transition to senior care or a nursing home.

If you owe taxes or have liens, we can help. If your house is messy, you can take what you want and leave the rest. You can sell my house as is fast.

Upward Home Solutions can make selling a house during the pandemic less stressful, emotionally, and financially.

Find A House, Get $$: Our Referral Program

Find A House, Get $$: Our Referral Program

We pay you for each and every referral that leads to a sale.

Upward Home Solutions is looking for people who want to partner with us in our mission of revitalizing neighborhoods, one house at a time.

Are you ready? It’s easy to submit a lead. Click here to get started.

Columbus’ Own Fixer Upper Couple

Have you ever wondered where the Fixer Upper power couple, Chip and Joanna Gaines, find the houses for their business? They have a network of people who are constantly searching for their next flip. Finally, ut has to be the right house – good bones, lots of potential, and purchased for a decent price.

The Owners, Tim and Katie

Tim and Katie, the fixer-upper power-couple in Central Ohio, are looking for their next renovation, and they need your help.

our referral program is the best
Tim and Katie

Do You Know Anyone Like This?

**Perhaps you know of a house in your neighborhood that is vacant. The windows are always dark, no one shovels the sidewalk in the winter or mows the grass in the summer. You don’t remember how long it’s been since you’ve seen a car in the driveway.

**Maybe you have an uncle who is retired. He lives alone and hasn’t done much to the house since he bought it 30 years ago. There is wallpaper in the hall and a pink sink in the bathroom. Your uncle has been talking about how nice it would be to buy a condo in Florida and be a beach bum, but something is holding him back.

**Or you have a friend who owns a rental house. At girl’s night out, she was talking about how hard it is to find a good tenant. Her husband hates spending weekends doing handyman jobs at the rental. Although they like the income, they have a kid going to college soon, and she complains about how she doesn’t like being a landlord.

We want to hear from you!

Have you ever heard someone say “how do I sell my house quickly for cash?”

Upward Home Solutions has services to fit every need.

We buy houses as is so people don’t have to fix them up. Even better, they can take the stuff they want and leave the rest.

Our company uses technology to help people who have mobility issues or live out of state. We recently bought a house from a man who lives in the Caribbean. He did not have to travel back to Ohio for the closing, saving him time and money. Moreover, our title agency will come to you, even to a nursing home.

Read about an elderly couple who were ready to move on and the amazing transformation of their house.

We pay you for the referral.

Many of our best properties have been found by our network of friends, Realtors, and through social media.

How It Works

1. Send Us The Info

You give us as much info as you know about the house. At a minimum, we need a property address. If you know the name, phone number, and/or email address for the owner, that’s even better. Don’t worry if you don’t have contact information for the owner. We can figure that out.

Email information to Upward@614Houses.com

Call us at 614-705-8066

Submit the information on this form.

Be sure to include your contact information because we will tag the lead with your name. We want to be sure to thank you!

2. We will take it from there.

Either Amy or Tim from the Upward Home Solutions Team will contact the homeowner. If the homeowner is interested in selling, we will set up an appointment to visit the house and make an offer.

3. If they accept the offer, Upward Home Solutions will give you $100.

You will have your choice of a Cameron Mitchell gift card, an Amazon gift card, or cash. We will get in touch with you and ask you how you would like to receive your gift.

It’s that easy! One email or phone call is all it takes to get the process started.

cash for your referral


Check out the blog post “Referral Program FAQ.”

When you need to sell a house for cash, fast… call Upward Home Solutions. Interested in learning about how to sell a house quickly? You might also like the post “Upward Home Solutions: Your Local Buyer.”