The next term in our Real Estate Defined series is:

        *Equity: the interest or value that the owner has in real estate over and above the liens against it.

        Example: A property has a market value of $100,000. The owner currently owes $60,000 in mortgage loans that

        are against the property. The owners equity is $40,000.

 

                                                  Market Value    $100,000

                                                  Liens                  -60,000

                                                 ______________________

                                                Equity                  $40,000

At Equity Real Estate we are happy to help you gain a greater understanding of your property's value and your investment. Give us a call!

 

*Barron’s Real Estate Guide