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Updated over 10 years ago,
Equity, why does it matter?
Hi Everyone,
This will be my first post and I was wondering if all the veterans could help this newbie out. I'm currently reading J Scott's book on flipping homes and I came across a section where it recommends looking at more "established" neighborhoods because homeowners tend to have more equity in there home. Why would it matter if a home has equity? I understand that equity is the difference between the market price and the amount owed on the mortgage but it is not connecting in my brain why that would help me as a buyer. Thanks again for your help.
-Tim