What is equity in real estate? What is real estate private equity? Understanding equity is a great way to enhance your real estate vocabulary, but it's also good to know because of its relevancy to a real estate career.
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Real estate equity is one of the biggest benefits of owning property.

Homeowners with a large equity can use it to create substantial wealth or to create cashflow by becoming an investor.

So, what exactly is equity?

Real estate equity is the difference between the fair market value of a house and what you owe on it.

To deconstruct this further, if you buy property for $100,000 and sell it for $400,000, you created $300,000. That means the value of your property grew 400% from the time you bought it.

How does this affect real estate agents?

You can use equity to help you grow your career and become an investor, for one. The other idea is that this idea becomes a powerful selling point for homeowners.

When you approach a homeowner with a large equity, they will be more willing to sell their home knowing how much more money they can earn from it.

For more information on how equity can transform your career, watch the full video.

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