Maintain the equity in your home
We find that oftentimes people don’t give enough thought to maintaining and increasing the equity in their homes, until they’ve called upon us to help them sell it! From the moment home ownership is taken the impact of improvements and revisions should always be in the forefront of the decision making equation to increasing and maintaining home equity. We advise our clients that even if they don’t think they will ever sell, they should still be mindful of, and prepared for that possibility. A tempting unexpected opportunity may come along, or life circumstances may change, and suddenly a decision is made to sell. It is at this pivotal point that the homeowner would understandably like to get as much return as possible on their valuable asset. Even if people think they are in their lifelong home, they may want to pass the potential equity on to someone else. Another incentive to maintaining and increasing home equity is to be able to take advantage of refinancing opportunities or to borrow additional money against the value of their home, which would need to appraise adequately in order qualify for the loan.
Below are just a few things to consider with regard to maintaining home equity:
- Over improving for the location. There may be a limit to how much a house could be valued at.
- Make sure to pull the necessary permits for any work you have done.
- Be careful of renovation choices. Removing bedrooms and bathrooms could have a negative effect. There are many examples.
- Make timely, needed repairs. Neglecting to make certain repairs could lead to additional damage.
- Pay attention to the quality of materials used. A low quality product can reduce the value, and there may be a limit to how much return certain projects will produce.
Of course, a house is not only an investment. It is a home, and personal choices in renovation could potentially lessen the house’s value or market appeal. In that case we recommend that it be a choice, not a mistake.
We work with our clients at every step of the house buying and selling process. Our clients call us to provide current market information, guidance and advice well before they ever consider selling. The first step in preparing a house to sell begins the day of the initial purchase.
Contact John & Cindy Farrell for specific, tailored information about your home. 978-468-9576