Equity is one of the best byproducts of owning your own house. The value of most homes tend to appreciate instead of depreciate, which is extremely beneficial when it comes to selling your home. It’s time to grab a hammer (or at least a notepad), because we’re sharing tips on how to make the most of your house with property upgrades.
Here are 5 ways to build home equity.
Curious what your house is really worth? You can calculate your home equity by finding the current market value of your home and subtracting what you owe. Gains usually come from an increase in market value over time. But there are other ways to increase those gains, too. New homeowners looking to build some equity should follow this checklist.
1. Paint a Room
Some new paint can really freshen up a room, and sometimes, all you need is a new coat. Painting walls and hanging new wallpaper are some of the easiest home projects you can do, plus they cost relatively little. When done right, it can transform your room into something completely different. And not only does new paint liven up a room, it also provides protection. Our interior walls contently deal with dust, dirt, moisture and harsh light. By giving your walls a new coat, they’ll be protected and help with your home’s structural integrity.
2. Focus on the Front of the House
Your curb appeal is sure to rise after some deliberate renovations to your home’s front. The driveway, front door and lawn are perfect spots for improvements. They also work to sell your house before someone even steps inside. Minor adjustments can make a heck of a difference. Whether you build a new porch, replace your front door or add some new bushes to your lawn, curb appeal is extremely important to building equity.
3. Renovate the Kitchen
The kitchen is truly the heart of the home. It always seems to be the most magnetic room in the house. People are drawn to the kitchen to congregate and celebrate. However big or small, every home has a kitchen. You can set the mood however you’d like with quick renovations. Replacing hardware, like cabinet knobs, sink faucets and light fixtures can be an inexpensive yet effective task. You don’t need to go overboard with your remodeling. Building equity doesn’t have to be over elaborate.
4. Update a Bathroom
An outdated bathroom can be a real downer. Bathrooms are necessary in homes, but they don’t have to only focus on function. They should be a relaxing and carefree spot inside your home. New tile, cabinets and a new sink can change the whole look of a bathroom. The average cost of a new bathroom can vary but will definitely work in your favor if done correctly.
5. Find Your Flooring
A home’s floors can often be overlooked, but in reality, they affect people’s impressions of a room. Even if it’s subconscious, quality flooring has the opportunity to affect the look and functionality of your home. Wood flooring, new tile and soft carpet can help you live more comfortably and help build that equity. It gives homeowners the opportunity to personalize their living space, while making the home look and function better.
Home improvement is typically the most obvious way of increasing the value of your home. A little remodeling can go far and boost a home’s equity… but you need to be strategic. Putting in a large amount of money into home improvements doesn’t always pay off. Devise a plan before starting your work. If you’ve been looking for an excuse to do a little remodeling to your house, building equity is a great reason. Find the right financing at AB&T, whether you’re looking for a future home or looking to build or use your home’s equity.
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