GRAND RAPIDS, Mich (WOTV) – Equity is the difference between your home’s value and how much you owe your mortgage lender. Between paying down the mortgage balance and appreciation, a house gains equity gradually over a period of time. Economic conditions play a major role in how fast a home appreciates.
Whether you’re getting ready to sell your home or want to improve it for your own enjoyment, here are some tips to consider.
Plan your remodel
Whether you just bought a house or you have lived there for a while, the fastest way to increase your home’s value is by making a plan. You will fare better if upgrades are made intentionally and not on impulse.
Make a list
List the things you want to change and the updates you would like to make. Categorize your list by how much it may cost, including your time and money. Be realistic. Once you have a categorized list, take a look and prioritize what is a real ‘must have’ and what is more of a dream. See if you can come away with a reasonable balance.
Do Your Research
Once you have made a plan, do research or talk to a realtor to see what sort of return those improvements may bring. Some improvements will add considerably more value to your home than others. If you’re planning on selling, talk to your realtor and make a selling plan.
Determine Your Financing
If your list outweighs your savings, consider a home equity loan or other options. Contact your local credit union or bank and see what options fit your plan. Your financial strategy can boost your home value in a big way. Many different loan features can help you leverage your loan so that is comfortable for you, give you an opportunity to do home improvements, and to invest in your future.