Did you know that 60 to 80 percent of the average homeowner’s net worth is in their home and property? Whether it’s a small condo or a large house, a home is a major investment and one that should gain in value over time. While some appreciation of your property’s value tends to happen on its own, there are still ways that a homeowner can work to increase the value of their home. Below we’ll share a couple of tips on how you can build your home equity over time.
Paying Your Mortgage off Faster
In short, the amount of equity you have in your home is the difference between how much the home is worth and how much is owed on its mortgage. With this in mind, it’s easy to see that the fastest way to build equity in your home is to pay off your outstanding mortgage balance. Of course, for most homeowners this is easier said than done; however, there are a few tricks that you can use to speed things up. Consider using an accelerated payment plan in which you add an extra weekly payment each year, or look at bumping up the total monthly payment if you have additional room in your budget. Every dollar left on the mortgage is a dollar less in home equity, so take care of the mortgage as quickly as possible.
Renovating to Increase Home Equity
Renovations are the primary means of adding value to your home, which will increase your home equity. It’s critical that any upgrades that you undertake are those which would lead a buyer to pay more for the home – an extra bathroom, an outdoor patio, or perhaps new granite countertops in the kitchen. The goal is to ensure that the increase in your home’s value is more than the upgrade costs, or you’ll see a negative return on your investment.
Note that regular home maintenance such as repairing the roof might not count as a renovation, but is still important in protecting your home’s equity. A neglected home is one that decreases in value over time.
Maximizing Your Return When You Sell
It likely goes without saying that building equity in your home is only one side of the equation as you’ll still need to sell the home to realize that increase in value. When you decide to sell your home, choose to work with a professional real estate team instead of trying to handle the process yourself. With tens of thousands of listings on the market at any given time, selling in Nashville requires marketing expertise and a real estate agent that knows how to connect with buyers quickly and efficiently. Going it alone means the possibility of leaving a lot of equity behind.
Are you thinking about selling your home in Nashville or the surrounding area, or is it time to upgrade to a larger, more valuable home? The Armstrong Real Estate Group is happy to share our expertise and to advise you on how to extract the most equity out of your home and property. Contact us today at (615) 807-0579 or through our quick email contact form.