Property Condition
What Is Equity?
Equity is the portion of a property's value that the owner actually owns outright — the market value minus any mortgage balance and liens. It's what a seller typically walks away with after a sale.
Equity is your real ownership stake. If your home is worth $250,000 and you owe $150,000 on the mortgage, you have $100,000 in equity, before any other liens or selling costs.
When you sell, your equity (minus closing costs and any liens) is what you receive. Preserving equity is a key reason to sell before foreclosure rather than letting the home go to auction.
Even in a cash sale below full retail value, you may keep meaningful equity once you account for the repairs, commissions, and carrying costs you avoid. Running the actual net numbers is what matters.
Have a property you need to sell?
Diamond Home Buyers makes fair cash offers across Michigan, Tennessee & Florida — any condition, any situation. Close in as little as 7 days.