How a REALTOR® Can Help You Use Home Equity to Make Your Next Move

Louisiana REALTORS® • May 21, 2025

If you've been thinking about moving but aren't sure how to afford it, there's a good chance you're sitting on the answer: your home equity. Many homeowners don't realize how much equity they've built—or how a REALTOR® can help them turn it into the key to their next home.

Understanding your equity is more than just knowing a number—it's about knowing how to use it to reach your goals. That's where an experienced real estate professional can make all the difference.


What Is Home Equity?

Home equity is the portion of your home you truly own. It's calculated by taking your home's current market value and subtracting what you still owe on your mortgage. For example:

  • Home value: $400,000
  • Mortgage balance: $250,000
  • Equity: $150,000


Over time, your equity grows as you pay down your loan and as your home appreciates in value—especially in strong housing markets.


How a REALTOR® Can Help You Understand Your Equity

Most homeowners have a general idea of what their house is worth—often based on online estimates or what they've heard from neighbors. But while those sources can offer a ballpark figure, they rarely reflect the full picture. That's because real estate values are influenced by many nuanced factors, including market conditions, recent comparable sales (known as "comps"), and even buyer demand in your specific neighborhood.


This is where a REALTOR®'s expertise makes a real difference. They can prepare a Comparative Market Analysis (CMA)—a detailed report that goes far beyond a Zestimate or automated valuation.


A CMA evaluates:

  • Recent home sales in your area that closely match your home's size, features, and condition
  • Current listings and pending sales to show how your home compares to active competition
  • Local market trends, such as rising or falling demand, time on the market, and seasonal shifts
  • Neighborhood factors like school ratings, walkability, and community amenities that impact value


With this data in hand, you'll learn:

  • How much your home is worth today, based on real-time market activity—not outdated estimates
  • What buyers are paying in your area, so you can understand how your home fits into the current landscape
  • How much equity you've likely built up once your market value is compared to your remaining mortgage balance


This isn't just useful information—it's the foundation for making a confident, informed decision about your next move. Whether you're upsizing, downsizing, or simply exploring your options, knowing your true home value puts you in control of your financial future.

 

How a REALTOR® Helps You Put Your Equity to Work

Once you know how much equity you've built, the next step is understanding how to strategically use it—and that's where a knowledgeable REALTOR® becomes your most valuable resource.


Home equity is more than just a number on paper. It's a powerful financial tool that can open doors to new opportunities, and your REALTOR® can help you decide which path makes the most sense for your personal goals and current situation.


Here are a few common ways homeowners use their equity:

  • Make a larger down payment on your next home: The more equity you apply to your next purchase, the stronger your buying position. A larger down payment can reduce your monthly mortgage, help you avoid private mortgage insurance (PMI), or even allow you to move into a higher-value home than you thought possible.
  • Pay off debts or cover closing costs: Some homeowners choose to use a portion of their equity to eliminate high-interest debt, pay off student loans, or cover the closing costs and moving expenses associated with buying and selling. This can free up monthly cash flow and reduce financial stress as you transition into your next home.
  • Fund home renovations to increase resale value: If your home needs updates or repairs before hitting the market, equity can be used to finance those improvements. Strategic renovations—like updating kitchens or bathrooms, replacing flooring, or enhancing curb appeal—can boost your home's value and help it sell faster and for a higher price.


Your REALTOR® will help you evaluate these options in the context of your financial goals, timeline, and local market conditions.


Your home isn't just where you live—it's also one of your greatest financial assets. With the right guidance, you can turn your equity into the next step toward a home that better fits your life. Reach out to a local REALTOR® for a free home valuation and personalized guidance. Your next move might be more within reach than you think.

CONSUMER RESOURCES

2026 Legislative Session Scoop - Week 4 Recap

By Louisiana REALTORS® • April 3, 2026
This week, the Legislature remained in high gear, and several items relevant to Louisiana’s real estate market moved into focus. The biggest headline for our industry this week was HB 468 by Rep. Troy Hebert , our wholesaling/consumer-protection bill, was slated to be heard on the House floor, however was bumped due to floor congestion and out-of-order bills. It is now expected to be reset for next Tuesday. This bill remains one of the clearest “market integrity” efforts on the board with clearer rules for non-traditional transactions, stronger transparency and better consumer protections. We also continued substantive policy work behind the scenes. We are actively engaging with Rep. Carver on a vacant land disclosure bill he has authored, and we appreciate that he is welcoming our input and guidance as the language is refined. Our goal is straightforward: ensure any vacant land disclosure framework is practical, reduces confusion and avoids unintentionally shifting liability or enforcement burdens onto real estate professionals. In addition, we were pleased to deepen our relationships at the Capitol this week. We had the privilege of hosting a lunch for the Governor’s Office, enjoyed meeting Governor Landry’s team, and look forward to working with them in a constructive, solutions-oriented manner as the session continues. Finally, Rep. Hebert also filed an additional measure that aligns with our legislative agenda and speaks directly to transaction risk management: HB 1027 , which would limit liability for licensed real estate appraisers in situations involving smoke and carbon monoxide detector compliance. The current law already provides that real estate agents are not liable for a seller’s failure to comply with Louisiana’s detector requirements in one- or two-family dwellings. HB 1027 would extend that same liability protection to licensed appraisers by amending R.S. 40:1581(F). This is a clean, common-sense clarification that helps prevent appraisers from being pulled into compliance disputes that properly belong with the seller’s statutory obligations. Next week, committees are scheduled to hear multiple bills relevant to real estate, including measures involving construction and roofing standards (often tied to insurance and mitigation), property rights/expropriation, and property tax and adjudicated property issues that can influence housing supply and neighborhood reinvestment. We will stay closely engaged and will flag any bills or amendments that materially affect transactions, homeownership costs or private property rights. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.

Cookbook for the REALTORS® Relief Foundation!

By Louisiana REALTORS® • April 2, 2026
Louisiana REALTORS® is compiling a cookbook of Louisiana flavor with a REALTOR® heart in support of the REALTORS® Relief Foundation . And we have two ways for you to get involved:  Join us in contributing your favorite recipe using this online form. If you want to include a picture with your recipe, send to info@larealtors.org and reference recipe title in email subject. Or share your creativity by designing the cover artwork for the cookbook. A small committee will review all entries and choose one to print on the cover. Stay tuned for more details on when you can grab your own copy of the cookbook! Cover artwork and recipes are due by April 17th.

2026 Legislative Session Scoop - Week 3 Recap

By Louisiana REALTORS® • March 27, 2026
Week three of the Regular Session kept real estate issues in the conversation, even as lawmakers continued to focus heavily on workforce, tax and insurance policy. On the property tax front, measures to reshape assessments and exemptions, including proposals for a new blight rehabilitation exemption and additional relief for seniors, remain parked in the House Ways and Means Committee as stakeholders work through fiscal and local government concerns. These bills matter because they will influence long-term carrying costs, redevelopment incentives and how tax burdens are shared across residential and commercial property. Homestead related legislation, including parish level authority to increase the exemption amount, is also in the queue, signaling that the broader structure of Louisiana’s homestead system is officially on the table, not just the dollar figure. For homeowners and buyers, this debate goes directly to affordability. For local governments, it raises revenue stability and service delivery questions. There also has been movement on several identical pieces of legislation that would instruct parish assessors to develop a process for homeowners to permanently register for the homestead exemption for the duration that they own and live on the property. We are actively tracking legislation that will directly shape how investor activity and non-traditional transactions are recognized and regulated in Louisiana’s real estate market. This includes HB 468 by Troy Hebert , a key component of the Louisiana REALTORS® legislative package that targets the wholesale of residential real estate, which was heard in the House Commerce Committee on Monday. The bill is currently positioned for a floor vote early next week. As drafted, HB 468 represents a major step in the right direction for consumer protection in Louisiana, advancing needed guardrails through potential disclosure, registration, and practice standards that could redefine how assignment contracts and “off-market” transactions intersect with licensed brokerage activity. In parallel, HB 292 by Delisha Boyd passed the House on final reading, 86-3, and is on its way to the Senate. Together, these measures represent a coordinated policy effort to bring greater structure and transparency to emerging transaction models, while preserving the integrity of the traditional brokerage framework. Finally, the broader policy backdrop remains important: the Governor continues to push income tax changes and cost of living relief, while business and industry groups are prioritizing insurance, workforce and energy — each a key driver of long run housing demand and investment. As these debates evolve, we’ll keep you updated on what moves, what stalls and what it all means for your clients, your pipeline and private property rights across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
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