What is Sweat Equity?
If you have a list of things you would like to upgrade in your home, consider a bit of sweat equity. Enhancing the use of space, curb appeal, or finishing of your home can add value.
Are you familiar with a tool belt or ready to learn by doing it yourself? This article can give you a few good reasons to put on a pair of work gloves and add some sweat equity to your home.
What is sweat equity?
Sweat equity is the investment of your time and labor to add value to your home through improvements. Sweat equity requires doing the work yourself, rather than paying a professional.
Why should you invest sweat equity in your home?
Increasing Resale Value
Arguably the most compelling reason to utilize sweat equity, is to increase the overall value of your home. If you are planning to sell your home, but know that it needs a few updates, consider making some improvements to pull in better offers.
Pride in Home Ownership
Some houses can be just a few repairs or a renovation away from being your dream home. Utilizing your ideas to make your home the place you’ve always wanted is the perfect way to approach the idea of a sweat equity project.
What are the best sweat equity updates for increasing property value?
Curb Appeal
Upgrading the way your house looks from the street is the best way to increase anyone’s first impression of the home. Doing some quality landscaping or refinishing the exterior of your home is a sure way to add value to your home.
Additions
Adding features like a privacy fence, extra bedroom or bathroom, or finishing the basement can add the most value to your home. Be sure to follow the city and home owner’s association guidelines on these projects, as they often require permits.
Updating and Restoring
Styles of homes have changed through the years. While some trends have fallen out of favor, other styles have remained timeless in their appeal. For example, shag carpeting and faux wood paneling, must go. On the other hand, restoring the original oak flooring or keeping the wainscoting and classic crown molding can increase the value of the home through its historical appeal.
Renovating
If you want to make better use of the space in your home or have plans for big changes, it’s time for a renovation. Renovations are more than just the basic up keep of a home, and if done right a renovation can add immense value to your home.
How should you finance your sweat equity project?
Some sweat equity projects require more than elbow grease and a few buckets of paint. Big renovations can costs thousands of dollars. One of the most popular reasons homeowners get a Cash Out Refinance on their mortgage, is to reinvest in their home with a renovation.
Read more about Cash Out Refinancing in a previous article.
We are a mortgage company looking to educate homeowners. Our goal is not only to be your go-to mortgage experts, but also give you helpful information on home ownership.
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