14 Nov Building “Value Equity” In Your Home
Building “Value Equity” In Your Home
When it comes to equity in your home, most of the tactics to create it are related to actual cash equity, based on decisions made at purchase. Historically, there are three traditional ways to impact the equity in your home:
- Put down a larger down payment at purchase.
- Choose a 15 or 20 year mortgage versus a 30 year mortgage.
- Make extra payments each year aside from regularly scheduled payments.
After all, equity refers to the amount of your home that you actually own. However, outside of that traditional definition, there’s a growing concept of “value equity”. What is your home actually worth at sale? What “equity” might you have based on changes to its value if and when you wanted to sell it, created by your own home improvements?
This concept has taken off in recent years as people realize that in reality, there’s room to create real “value equity” without ever doing high ticket renovations like a massive kitchen remodel or completely finishing their basement. Simply updating your home and making basic enhancements that would otherwise turn prospective home buyers off can create real value. The kind of value that far outweighs the cost to complete the project. It keeps your home up to par with other comps in the area, without suffering the cost of big changes.
Here’s a great working example…refinishing your 1980’s golden oak cabinets would cost you a fraction of the full replacement value. You would actually make money from that update when you go to sell your home. If you added brand new cabinets, there’s almost no way that you’d recoup that full amount.
Even smaller enhancements can have a big impact in terms of making sure that your house looks and feels as updated as those with higher comps in the area. Removing an older popcorn application from your ceiling and adding new trim with a fresh, neutral color palette can make your home the best version of itself without knocking down walls or ripping apart bathrooms.
Speaking of bathrooms, those can often be the hardest spaces in your home to create “value equity” in. People are specific about what they like and don’t like, and plumbing or tile work can be prohibitively expensive. What CAN create instant equity, though, is taking care of the basics that would drive buyers away and lower your sale price. That includes repairing any water or mold damage, and adding a lighter paint color that maximizes the amount of natural light in the room. No electrical work required…just the power of psychology and professional craftsmanship.
At Neighborhood Painting, we provide a number of these equity-improving services to help update your home. That list includes:
*popcorn ceiling removal
*water/mold damage repair
*cabinet refinishing and painting
*interior room painting
The bottom line is this…restoring what you have by painting, texturing, or making cosmetic updates is always the easiest path to getting ROI. We can help you build value equity in your home by making it the best version of itself, and without knocking down walls. Smart home improvements sometimes are simple as and effective as painting the walls a lighter shade to give a space a more modern and open feel.
For a limited time, many of our interior services come with a 15% off discount offer. This won’t last, so please contact us today to take advantage of this equity-building opportunity. We’re thankful for all the great customers we’ve helped so far this year, and we want to add you to the group!