Posted by Rick W. on February 26, 2000 at 04:56:22:
Brian
The seller’s equity is simply the difference between the market value of the subject property minus his total debt on the property. If a house is worth $100,000, and the seller owes $92,000 (whether that is just a first mortgage or several mortgages/lines of credit), his equity is $8,000.
The trick is knowing the true market value, not just taking the Realtor’s opinion (usually inflated).
Good Luck!
Rick W.