The short answer

Your home is worth what a buyer will pay for it in today’s St. Louis market. The best way to estimate that is to compare it with similar homes that recently sold nearby. Your equity is that value minus what you still owe on your mortgage.

But the number that matters most before your next move is a third one: what you’ll actually walk away with after selling costs. That’s the money that becomes your next down payment.

If you’ve been scrolling listings at night and wondering whether a bigger home is realistic, this is where to start. You don’t need to know your exact number yet. You just need to understand how it’s figured, so the decision feels clear instead of overwhelming. We’ll take this one step at a time.

What is home equity?

Home equity is the part of your home you own outright. It’s your home’s current market value minus the balance on your mortgage and any other loans secured by the house, like a home equity line of credit.

Equity grows two ways. You build it a little every month as your payments lower your loan balance. And it grows when your home’s value rises. Many St. Louis families who bought five or more years ago have more equity than they realize, because both have been working for them at the same time.

How do I calculate my home equity?

You can get a rough number in about 10 minutes with three steps.

1. Estimate your home’s market value. Look at homes like yours that sold in your neighborhood in the last 3 to 6 months. Similar size, age, bedrooms, bathrooms and condition matter most.
2. Find your loan payoff. Your mortgage statement or lender’s website shows your principal balance. Your actual payoff amount will be a little higher because of interest, so ask your lender for a payoff quote if you want it exact.
3. Subtract. Market value minus everything you owe on the home equals your equity.

Here’s an example for a family in South County. These numbers are for illustration only.

Step	Example
Estimated market value	$375,000
Mortgage balance	− $210,000
Estimated equity	$165,000

That $165,000 is a starting point, not a check you’ll receive. The next sections explain why the value estimate can move and what comes out before you get to keep it.

Why online home value estimates can be off

Online estimates are a reasonable first look, but they can’t see inside your home. Sites like Zillow, Redfin and Realtor.com use automated models built on public records and nearby sales. They don’t know that you redid the primary bathroom, that the basement is finished, or that the roof is two years old.

They can also miss the details that matter block by block in St. Louis:

• School district lines. Two homes a few streets apart can sit in different districts.
• Municipality rules. Many St. Louis County cities require an occupancy inspection before a sale, which can affect timing and repair costs.
• Condition and updates. A refreshed kitchen and an original one look the same to an algorithm.
• Few recent sales. In neighborhoods where homes rarely come up for sale, the model has less to work with.

Zillow publishes its own accuracy figures for homes on and off the market, and its estimates are typically less precise for homes that aren’t listed. Use the online number as a range, not an answer.

What determines your home’s value in St. Louis?

Your home’s value comes down to what comparable homes recently sold for, adjusted for how yours is different. When I prepare a comparative market analysis (CMA), these are the things I weigh:

• Recent comparable sales. Homes of similar size, age and style that sold nearby, usually in the last 3 to 6 months.
• Current competition. What’s for sale now and what’s under contract in your price range. Active listings show what buyers are choosing between today.
• Location details. Your school district, municipality, street and lot all matter.
• Layout and function. Number of bedrooms and bathrooms, a usable primary suite, a mudroom, storage, and a finished basement.
• Condition and age of big systems. Roof, HVAC, water heater, windows and electrical. Buyers notice these in the inspection, so they show up in the price.
• Updates. Kitchens and bathrooms carry the most weight. Fresh paint and simple repairs help more than most people expect.
• Timing. Spring usually brings more buyers in St. Louis, but a well-priced home sells in any season.

A CMA turns all of that into a price range, not a single number, because no agent can promise a final sale price. Buyers and the market decide that.

How much will I actually walk away with?

What you walk away with, your net proceeds, is your sale price minus your loan payoff and selling costs. Most of those costs come out at closing, so you don’t pay them upfront.

The usual costs for a Missouri seller:

• Agent compensation. Negotiable and set in your listing agreement.
• Title and closing fees. Title insurance for the buyer, settlement and recording fees.
• Prorated property taxes. Your share of the year’s taxes up to the closing date.
• Repairs or credits. Anything you agree to after the buyer’s inspection.
• Municipal inspection. Many St. Louis County cities require an occupancy inspection, and some repairs it flags must be done before closing.

Here’s the same South County example, carried through to closing. Again, these numbers are for illustration only.

Line item	Example
Sale price	$375,000
Mortgage payoff	− $210,000
Agent compensation (example: 5%)	− $18,750
Title, closing and recording fees	− $3,000
Repairs or credits after inspection	− $4,000
Prorated taxes and inspection fees	− $1,500
Estimated net proceeds	$137,750

That’s about $27,000 less than the equity number from earlier. Knowing that gap before you shop is what keeps your next budget realistic. Before any of my sellers list, I give them an estimated net sheet with their real numbers.

How does my equity become the down payment on my next home?

When you sell, your net proceeds can go straight toward the down payment and closing costs on your next home. That’s how most move-up families in St. Louis afford a bigger home without starting from zero.

Continuing the example, here’s how that might look:

1. Start with net proceeds: $137,750.
2. Set some aside. Moving costs, a few months of reserves, and small projects in the new home. Say $15,000.
3. Put the rest down: about $122,750. On a $500,000 home, that’s roughly 24% down, which leaves a loan of about $377,250. Putting 20% or more down on a conventional loan also means no private mortgage insurance.

The number to protect isn’t the price of the next house. It’s the monthly payment that still feels comfortable for your family. A lender’s pre-approval tells you the most you qualify for. Your budget tells you what actually fits your life. Let’s run the numbers before we fall in love with anything.

What if we need to buy before we sell? Your equity can still help. Options include an offer contingent on the sale of your current home, a bridge loan, or a home equity line of credit. Each has trade-offs, and the right one depends on your timing and your lender.

Frequently asked questions

How do I find out what my home is worth? The most accurate way is a comparative market analysis (CMA) from a local agent. It compares your home with similar homes that recently sold nearby and adjusts for condition and updates. Online estimates are a useful starting range.

How is home equity calculated? Home equity is your home’s current market value minus everything you owe on it, including your mortgage and any home equity loan or line of credit.

Is my equity the same as what I’ll get when I sell? No. Your net proceeds are your equity minus selling costs like agent compensation, title and closing fees, prorated taxes, and any repairs or credits. Ask for an estimated net sheet before you list.

Does Missouri have a real estate transfer tax? No. Missouri is one of the few states without a real estate transfer tax, which lowers closing costs for sellers.

Can I use my equity to buy before I sell? Yes. Common ways are a bridge loan, a home equity line of credit, or an offer contingent on the sale of your current home. A lender can tell you which you qualify for.

How often does my home’s value change? It changes as nearby homes sell and the market shifts. If you’re 6 to 12 months from moving, checking your value every few months helps you plan.

Your next step

If you’re curious what your home is worth today, you can request a free home value report. I’ll look at your home the way a buyer would, not the way an algorithm does, and send you a realistic range plus an estimated net sheet.

There’s no commitment and no timeline attached. Some families use it to move this spring. Others use it to start planning for two years from now. Either way, you’ll know your numbers, and the next decision gets a lot calmer.

You don’t have to figure this out alone. Find Out Your Home Worth.