From the moment you move into a new house, you'll probably start thinking of ways to change it up. New colors, new materials, new… anything! It's great to have that mindset not just for your own personal enjoyment of the home, but for the added value those changes can bring to your home equity.
Building equity in a home doesn't have to break the bank, your back... or anything else, for that matter. Let's go over the basics and tips on how to build home equity with easy home improvements.
What's Home Equity?
Very simply, "home equity" is the difference between what your home is worth and how much you have left to pay for it. The easiest way to estimate your home equity is to subtract the remainder of your mortgage from your home's present market value. For example, if your home is worth $350,000 and you have $290,000 left to pay on your mortgage, your home equity is around $60,000. (Read our blog on home equity for a more in-depth understanding!)
It can take around four to five years to build equity in a home, but as long as you live there, it's all about increasing that number – which can be easier than you might think.
Easy Ways to Build Home Equity
Each change you make to your home could have a positive or negative effect on your home equity. Keep in mind how each upgrade, replacement, and construction is going to affect your home's value – it's also going to impact the equity you're building in it.
That said, there are a few reliable ways to build equity in your home:
Paint the interior and/or exterior of your home. When it comes to painting your home, let "simple" be your guide: neutral colors inside and no more than three different colors outside. Statistics show that'll get you far in boosting equity in your home!
Stain your deck. If you've already got a deck, put a few solid coats of stain on it to give your home value a quick kick in the pants. (Not sure where to start? ReStore's got you covered!)
Replace flooring in key areas of your home. Because it gets a lot of wear and tear, simple flooring replacement can make a big difference for the vibe, style, and – yes – the equity in your home. ReStore even has a great primer to get you started!
Add shelving where it's most useful. Kitchen, bathroom, living room, garage, bedroom – anywhere you might want to store stuff, shelving could be a boon for the value of your home.
Do some gardening and landscaping. When looking for ways to build home equity, think about the space around your home, too. Try some aesthetic upgrades like flowers, shrubs, and landscaping rocks to make your home pop.
Of course, going the extra mile can only stretch your home equity a little further. They're more of a time, effort, and money sink, but building a deck and building a fence are two more involved ways to drive up your home resale value and see better ROI.
Whatever you're thinking, look to ReStore at either of our locations for the tools you need to tackle the projects that'll bump up your home value and build equity in your home!