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Equity Value
Real Estate Investing Definition

The definition of Equity Value is:

The total market value of a property less outstanding debt. The value of a property owner's unencumbered interest in real estate. Equity is computed by subtracting from the property's fair market value the total of the unpaid mortgage balance and any outstanding liens or other debts against the property. Equity increases as the owner pays off his mortgage or as the property appreciates in value.

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