Equity is one of the terms that you might encounter in real estate transactions. When you are buying or selling, it is important to understand what this term means. Generally speaking, it is the difference in the market value of the real estate property versus the amount that you owe the mortgage lender.

Furthermore, 'equity' refers to the amount of money that you could end up receiving if you sold the home (once the mortgage is fully paid). But how can you optimize your equity? Find out more about the significance of equity before you see a Colorado Springs realtor team.

Facts About Real Estate Equity

The Importance of Equity in Real Estate (Image Source: Unsplash)

If you work with the best Colorado Springs realtor team, you can learn the following information about what it means:

The Gross Amount and Fees

Net equity is the term used to refer to the gross amount that you could get if you eliminate the cost of selling the home. Among these fees are a commission to the real estate agent, real estate tax, and more. In layman’s term, this is the amount that you could pocket following the sale of your home.


There are many ways to build your home equity. One of the recommended steps is to put in as much money into your mortgage loan.

When you do this, the actual value of your mortgage loan will significantly reduce. The lower the cost of your mortgage loan, the higher the equity on your home.


Every payment you make towards your mortgage loan is one way to build your equity. Thus, each payment you make gradually reduces the total amount of mortgage loan that you owe the lender.

Notably, it also reduces the interest that is placed towards that loan. The sooner you can pay off your mortgage loan, the higher the equity that you can get.

Home Improvements

Any form of home improvement that you make can boost your equity value. When you undergo home improvement projects, it adds to the market value of the property. In doing so, you can increase the equity that is tied to that property.

Market Value

Comparable sales of property within your area can also result in higher equity on your end. For instance, if the home prices in your neighborhood are going up, it can help to boost the market price for your home, too.

Consult with the Expert Colorado Springs Realtor Team!

The Importance of Equity in Real Estate (Image Source: Unsplash)

Would you like to learn more about real estate terms? To help you in the process of buying or selling a home, we have the best Colorado Springs real estate agent professionals like Brian Boals.

As part of the Remax realtor Colorado Springs team, you can rest assured that this is a group of the best professionals in the city’s real estate industry. You can learn more about our team and our expertise here.

Whether you want to buy or sell, you can use the information available on our website to help you make an informed decision. You can also contact us if you have any specific concerns.

If you prefer to speak with our Colorado Springs realtor team in person, we would love to see you! We are located at 215 West Rockrimmon Blvd. Colorado Springs, Colorado.