The Equity Conversation: Talking to Homeowners Who Don't Know What They Have

Homeowners have more equity than they realize.

They need you to tell them.

The Equity Opportunity

Home values increased 30-50% in many markets over the past few years.

Owners bought at lower prices.

They don't track current values.

The Conversation Starter

"Have you seen what homes are selling for in your neighborhood?"

This opens the door.

Who to Target

Homeowners who bought:

3-5 years ago (pre-2022) During the pandemic (2020-2021) Before the market shift

These owners have significant equity.

The Equity Calculation

Walk them through the math:

Purchase price: $300,000 Current value: $400,000 Mortgage balance: $270,000 Equity: $130,000

Show them the numbers.

The CMA Approach

"I can send you a comparative market analysis showing your home's current value. Takes me 10 minutes. Want me to send it?"

Most homeowners say yes.

The Follow-Up Call

After sending the CMA:

"Did you get the analysis I sent? Were you surprised by the value?"

Their reaction tells you everything.

The Investment Angle

For homeowners with significant equity:

"You have $150,000 in equity. Have you thought about using that to invest in another property?"

This creates two transactions.

The Move-Up Conversation

"Your home is worth $100,000 more than when you bought. That's your down payment on something bigger. Have you thought about upgrading?"

Equity makes moves possible.

The Downsize Discussion

For empty nesters:

"Your home is worth $450,000. You could buy a $300,000 condo and bank $150,000. Have you considered downsizing?"

Equity funds retirement plans.

The Refinance Reality

"With your equity position, you have options: Cash-out refinance, home equity line, or selling and moving. Which interests you?"

Give them choices.

The Tax Advantage

For long-term owners:

"You've owned for 10+ years. Your gains are substantial. Capital gains exclusions protect $250,000 for singles, $500,000 for couples. That's your equity tax-free."

This removes a major objection.

The Market Timing Message

"Values are high right now. If you've been thinking about selling, this is your market. Waiting could mean less equity if the market adjusts."

Create appropriate urgency.

The Rental Property Play

"Your equity could be a down payment on a rental property. Keep this house or sell it. Either way, you're building wealth."

Expand their thinking.

The 1031 Exchange

For investment property owners:

"You have $200,000 in equity. A 1031 exchange lets you move that into a better property without paying taxes. Want to explore that?"

Sophisticated investors appreciate this.

The HELOC Strategy

"You could take a home equity line of credit, use it for another down payment, and keep this property. Your equity works for you without selling."

Multiple paths to growth.

The Objection: Moving Costs

"Yes, moving has costs. But you have $150,000 in equity. After paying off your mortgage, closing costs, and moving expenses, you still walk away with $100,000+. The math works."

Show the net proceeds.

The Objection: Interest Rates

"Your 3% rate is great. But if this house doesn't fit your needs, the rate doesn't matter. Your equity gives you buying power. Would you rather have a low rate in the wrong house or the right house that you can refinance later?"

Equity beats rate anxiety.

The Database Search

Find equity-rich homeowners in your database:

Filter by purchase date (pre-2022) Look up current values Calculate potential equity Create your call list

This is your opportunity list.

The Neighborhood Approach

Target specific neighborhoods:

Areas with high appreciation Neighborhoods popular with investors Communities where people age in place Markets with strong demand

Different areas, different conversations.

The Past Client Priority

Start with past clients:

You already have their purchase price You know their property They trust you They'll take your call

Easiest equity conversations first.

The Script Practice

Role-play these conversations:

Opening: "Have you thought about what your home is worth now?" Middle: "Let me send you current market data." Close: "Based on your equity, what are you thinking?"

Smooth delivery matters.

Your Next 48 Hours

Pull a list of homeowners who bought 3-5 years ago.

Research current values in their neighborhoods.

Call 20 of them with the equity conversation.

Send CMAs to everyone interested.

Equity conversations create business from people who weren't planning to move.

Tiffany Hampton is a seasoned real estate leader and MAPS Coach with over two decades of experience helping agents succeed through leadership, coaching, and innovative strategy. As the founder of AgentGrowth365.com, Tiffany delivers proven systems, tools, and training that empower agents and market center leaders to grow with clarity and purpose. Whether you're looking to hit 24 transactions, streamline your coaching systems, or lead your business with impact, AgentGrowth365 offers a full suite of solutions designed to meet today's challenges and scale tomorrow's success.