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  • How much your home is worth today, based on real-time market activity—not outdated estimates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

2025 Spring Into Action Conference Recap

By Louisiana REALTORS® • May 16, 2025
Louisiana REALTORS® successfully hosted their annual Spring Into Action Legislative Conference in Baton Rouge on May 6-7, 2025. The two-day event provided REALTORS® the latest in industry changing issues while engaging in conversations with the state’s legislators and their peers. The conference kicked off with a pre-conference Appraiser Day hosting education devoted to that specialty. That evening, the LARPAC fundraising event celebrated Cinco de Mayo with the 80s cover band The Spazmatics and both live and silent auctions. The next day, REALTOR® Day, began with a breakfast expo with tabletop one-on-one discussions with partners of the real estate industry. Attendees then took part in education sessions on fair housing, code of ethics and professionalism. After a luncheon full of legislative updates from Louisiana REALTORS®, Senate President Cameron Henry, Jr. and NAR President Kevin Sears, attendees braved the weather and headed to the Capitol to advocate to lawmakers about the key issues impacting the real estate industry. The conversations continued at the Legislative Reception later that evening. From in-depth legislative updates to face-to-face meetings with our elected officials, this event brought our community together to amplify our voices and shape the future of real estate. Other conference highlights included a reception for our YPN members, local leadership forums and governance meetings. On Wednesday, Misty Ingersoll was elected as the 2026 Secretary/Treasurer and Marsha McGraw-Barbera was elected as NAR Small Board rep by the LR Board of Directors. Additionally, the following were elected to their 2026 positions by means of acclamation: David Favret, President-Elect; Kyle Straughn, Region I RVP; Tim Castle, Region II RVP; Leslie Victory Ortego, Region III RVP; Sabrina Pierre, Region IV RVP; Cindy Dyer, NAR Medium Board; David McKey, NAR State Allocated Specialty Director. Congratulations to Eloise Gauthier on receiving the REALTOR® of the Year Award! Louisiana REALTORS® looks forward to hosting REALTORS® from around the state at the Fall Governance Meetings and Installation, October 6-8, 2025, at the Renaissance Hotel in Baton Rouge. Take a peek of a quick recap on the day in the video and below! We would like to thank our sponsors La Capitol Federal Credit Union , Guard Home Warranty , realtor.com , The CCIM Institute Louisiana Chapter , CRS and Women's Council of REALTORS® Louisiana for their generous support in helping make this conference happen!
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By Louisiana REALTORS® • May 15, 2025
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Consumer Guide Update: Your Home and Estate Planning

By Louisiana REALTORS® • May 14, 2025
As previewed last week, NAR is pleased to share the latest consumer guide focused on estate planning. This guide explains how estate planning can help homeowners protect their property and ensure it is passed on according to their wishes, covering tools like wills, trusts, and title planning. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow a few days for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Your Home and Estate Planning Mortgage Interest Tax Deduction Understanding & Protecting Yourself from Title Fraud Buying Land and Building a New Home Deeds and Titles Thank you for continuing to engage with the “Consumer Guide” series and for sharing the resources with prospective clients so that they have the information they need to find success in their homebuying or selling journey. Please remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. Be on the lookout for next week’s guide on Wednesday, which will cover the differences between a buyer’s market and a seller’s market.
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