Step 4 – Determine the Equity in Your Current Home

Your home is more than just a place to live—it’s also one of your most valuable financial assets. Understanding how much equity you have is a critical step in planning for the future, whether you’re considering home modifications, downsizing, or transitioning to a senior living community.

What Is Home Equity?

Home equity is the difference between your home’s current market value and any outstanding mortgage or loan balances. It represents the portion of your home that you truly own—and it can be a powerful financial resource.

How to Calculate It:

1. Request a Comparative Market Analysis (CMA)
   Contact a Seniors Real Estate Specialist (SRES) to get a CMA. This report estimates your home’s current value based on recent sales in your area. An SRES understands the unique needs of older adults and can offer insights beyond pricing—like timing, market trends, and buyer interest.
2. Subtract Any Outstanding Mortgage Balance
   Once you know your home’s estimated value, subtract your remaining mortgage or home equity loan balance. The result is your available equity.

How Home Equity Can Support Aging in Place:

• Fund home modifications (e.g., stair lifts, bathroom renovations)
• Purchase a more accessible home or condo
• Offset the cost of moving to a senior living community
• Create a financial cushion for future care or emergencies

Additional Considerations:

• Timing Matters: Real estate markets fluctuate. Knowing when to sell—or whether to sell at all—can impact your financial outcome.
• Tax Implications: Consult a financial advisor or tax professional to understand how accessing equity may affect your taxes or benefits.

Knowing your home’s value gives you clarity and confidence as you plan your next chapter.

📌 Next up: Step 5 – Schedule a Certified Aging in Place Specialist (CAPS) Assessment

This assessment will help you understand whether your current home can be safely and affordably modified to meet your future needs.

Want the Full Guide Now?

If you’re ready to dive deeper into all your housing options without waiting for the full blog series, you can download the complete workbook today. Navigating the Next Chapter: Housing Options for Seniors in Transition is packed with expert insights, practical worksheets, and step-by-step guidance to help you or a loved one make confident, informed decisions.

Click here to get your complimentary copy now.

About Forevermore Homes

We’re the Forevermore Homes Team of Coldwell Banker, and we’re passionate about helping seniors and their families make confident, informed decisions about housing and care. Whether you’re modifying your home, downsizing, or exploring senior living options, we’re here to guide you every step of the way.