Just because your home’s value went up
doesn’t mean you have equity.
Let’s break it down:
Home value = $400K
Loan balance = $380K
Closing costs, agent fees = $30K–$40K
At best, you walk away with $360K–$370K
But you owe $380K
That’s negative equity, and it’s more common than people think.
The market may look strong on paper,
but once you factor in costs,
many sellers are underwater and don’t even know it.
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