Maintain the equity in your home
It happens often, people don’t give enough thought to maintaining and increasing the equity in their homes, until they call 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 process, with attention given to increasing and maintaining home equity.
We advise our clients, 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.
Additional incentives to maintaining and increasing your home equity is to be able to take advantage of refinancing opportunities or to borrow additional money against the value of your home, which would need to appraise adequately. Even if in a lifelong home, consider the equity that gets passed on to your heirs.
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 more examples.
- Make timely, needed repairs. Neglecting to make certain repairs could lead to additional and costly damage.
- Pay attention to the quality of materials used. A low quality product can reduce the value.
- 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 renovation preferences could override the concern about your home’s value. A decision could potentially lessen the house’s value or market appeal. In that case we believe it be a choice, not a mistake.
We work with our clients at every step of the house buying, owning and selling process. Our clients call us to provide current market information, guidance and advice about their homes well before they ever consider selling.
The first steps in preparing your home to sell, begins the day you purchase it.
Contact John & Cindy Farrell for specific, tailored information and guidance about your home. 978-468-9576
Originally published August 28, 2014. Updated May 10, 2018