So you want to build equity?
When looking to build equity in a home there are several common mistakes made by homeowners in their journey to building value. Here we will go over the top four pitfalls that can lead to you not getting all your money back out of your investment in housing. The most important take away of this entire article is to always remember housing upgrades and repairs must be made at equal quality level to the home. By following these four steps you are far more likely to build wealth in real estate and sell your home for more.
DIY to Why Why Why
Working on your own home can save you money for sure but it also can cost you. When repairing or upgrading your home you must make sure the quality of craftsmanship matches the home value. Often homeowners go DIY and do a terrible job matching the existing work. This can lead to home buyers offering less than asking price or even worse yet a home inspection nightmare where issues come up and negotiations needing to take place. Hiring a pro can seem expensive till the time of the sale.
Failure to Maintain
Maintaining your home may seem like a simple task before you buy a home but after the purchase of a new property you may realize it is more than you can handle. You must always keep in mind why you bought the home when you did, and more than likely curb appeal and condition came into play. Simple maintenance such as mowing the lawn or painting go a long way when it comes to equity. Letting the lawn overgrow can lead to the death of the grass and not painting wood can lead to deeper issues like rot. Simply put not maintaining your home is like throwing money in the trash in the form of equity.
Under Valued Upgrades
Upgrading a home is huge in building equity when done correctly but often people choose the wrong upgrades in both directions. Whether it be the million-dollar mansion owner shopping at a bargain outlet or the small cottage owner installing the most expensive cabinets in the store choosing appropriate upgrades is crucial to building your equity. One thing that is often forgotten here is that there is a such thing as over doing the updates and upgrades to a point where you spent a dollar to get 70 cents out. The key guide to think here is what does someone “expect” in a property like the one you are working on and on a scale of 1-10 move it up from there one single option so if they expect a 7 shoot for an 8 cause at a 10 you gave money away and at a 5 you will get low ball offers.
Under Utilizing Your Agent
Real estate agents are commonly under utilized especially after the buyer or seller is done with the transaction. Hire an agent that values your business and will work with you throughout your life being your personal real estate consultant and advisor. Having a professional that knows value can help you in the entire process of understanding building equity. Do not just buy a home and walk away from the agent and not look for advice. If this real estate agent is good you are going to be selling your home with them in the future so it would be best if you include them in the decision making processes that will affect the sales price and overall your equity in the home.
Owning real estate is a great way to build wealth when you make good decisions. Make sure during your journey in owning real estate you build up a list of trusted contractors and real estate professionals. Having that list and an agent you can work with and trust are both great ways to help you make sure you get a great return on investment. Movementum Realty prides itself in having highly educated expert real estate agents that are in it for the long haul. If you are looking to pair yourself with an agent who can help you build equity reach out to us and we would be happy to help.