Are you looking to sell your home? Refinance? Just give your place a little spruce-up? Increasing your home’s value is important for a number of reasons. For example, higher home equity will allow you to borrow more money in the event that you apply for a home equity loan that can be used for home remodeling projects, college tuition payments, and debt consolidation. Here are 5 surprising ways to boost your equity.
1. Hire a Landscaper
Does the outside of your home look like a jungle? If you’re afraid of losing your kids under the foliage in your yard, you should hire a landscaper. They can give the outside of your home a facelift by planting grass, trees, shrubs, and flowers. Besides making your home more appealing to passersby, a landscaper can help you boost your home equity. This is especially important if you plan to sell your home soon. If the outside of your home is unattractive, potential home buyers may run the other way before even giving the inside a chance.
2. Buy New Appliances
Do your household appliances look like they are straight out of the 70’s? If your dishwasher and refrigerator have seen better days, opt for new energy saving appliances. Besides saving money on your electric bill, you will increase the value of your home. Many potential home buyers look for new stainless steel appliances during a home search. Improve your chances of selling your home for a good price in the near future and save on your bill at the same time, and you’ll impress the lender when applying for a home equity loan while you’re at it.
3. Update Your Lighting
Another great way to increase your home’s value is to update your lighting. Many contractors install builder’s grade lighting in new homes. Builder’s grade is never ideal. If your lighting is lackluster, install a few stylish new fixtures such as pendant lights in the kitchen, a chandelier in your foyer, and ceiling fans in your sunroom.
4. Add Closet Space
Many older homes tend to lack the amount of closet space home buyers prefer today. If you only have a few small closets in your home, think about building some extra storage space. It’s typically not too costly and you’re almost guaranteed to make your money back. Your home equity may increase and you will have organized spaces to store your belongings.
5. Double Your Mortgage Payments
Since home equity is calculated by subtracting the amount that you owe from the value of the home, the easiest way to increase your home equity may be to double your mortgage payments to your lender each month. You’ll also save money on the interest of your loan. Making larger mortgage payments will allow you to quickly see your home equity increase and your liability decrease.
Boosting your home’s equity is one of the first steps to building wealth. Really, you have nothing to lose by increasing your home equity. You’ll have an even more beautiful home that will be a breeze to sell if you decide to move.
Featured Image: depositphoto/subodhsathe.comPosted on May 18, 2023