Home equity is defined as “the market value of a homeowner’s unencumbered interest in their real property, that is, the difference between the home’s fair market value and the outstanding balance of all liens on the property.” That means if I bought a home six years ago and made all of my monthly payments during that time, I will have some equity in my home as long as home values did not go down. Which, as we know in Ketchikan, home values are not going down; they are going up. Which means if you bought your home a few years ago, you probably have some equity built up that you may not be aware of.
There are other ways to get equity in your home besides just making your monthly payments. You can also make improvements to your home that will add to the over all value of the home. Below are some improvements you could make to raise your equity:
- More Efficiency- you can make your home more efficient by replacing old thermostats that you might have in the house.
- New Appliances – This is a great way to add some value to your home and to spruce up the look of your kitchen. New appliance can also help the home be more energy efficient. So keep an eye out on sales on new appliances at Schmolck Mechanical and Bernie’s.
- New Paint – If you’re able to paint the interior and exterior of your home and give it a new look, that could add some value.
- New Flooring – New flooring to go with some new paint could brighten up any room and should add some home equity.
Now, I wish I could tell you by doing these things you will be able to and hundred of thousands in equity to your home, but I can’t. The reality is, upgrading your home may not add that much in equity, but taking these steps may help put more money in your pocket when it comes time to sell and it may even help your home to sell faster.
In my own home that I am looking to sell this summer, we have been taking these steps and are trying to increase the value.. Some of the steps that we have done so far are: tearing out the carpet in the living room, upstairs hallway, and stairs, and putting in new vinyl plank flooring. We painted all the rooms in the house and have updated the refrigerator, microwave, and dishwasher. I have some additional updating I would like to do, but you’ll have to keep reading my blog for updates. It’s a 3 bedroom, 2 bathroom home if anyone is interested. I can make sure I send you the listing when it comes up.
Whether you’re looking to build some equity in your home, buy, sell, or rent out a current property, please keep me in mind for your real estate needs. Contact me any time and I will assist you any way that I can.
Thank you for reading.