How to increase the value of your home
As a homeowner, you have heard the phrase, "home equity" once or twice in your life. In layman's terms, home equity is the difference between how much your home is worth and what you currently owe on your house. As a homeowner, who is working towards paying off their home, they should try to increase the value of their home.
Although, this may not be one of the first steps of owning a home, such as, setting up your utilities or even getting to know your neighbors; knowing how to increase the value of your home is important.
To increase home value, there are several long term things to keep in mind.
First, you’ll want to assess what your best options to pay for your home are.
Tip #1: Get ahead on building equity into your home by putting down 20 percent on your down payment! A few benefits of putting down 20 percent are that you will have a smaller monthly mortgage payment, lower interest rate and earn instant equity in your home.
Tip #2: Opt for a 15-year mortgage. By choosing a 15-year mortgage over a 30-year mortgage, you can enjoy a lower interest rate and pay off your home faster.
Tip #3: Add more money to your mortgage payment each month. In turn, this added amount to your monthly payment is put towards your principal balance, otherwise known as the amount owed.
Second, decide where you can make improvements in your home to boost value.
For any home renovation, the goal should be to increase your homes living space and make rooms more “flexible” for future homebuyers. It may seem weird to cater your home to future buyers, but if your home doesn’t fit what the majority of home buyers are looking for and need it could cost you down the road.
A few popular features that appeal to modern home buyers are areas like flex rooms, Mother-in-law suites and second-floor laundry rooms. These little conveniences make all the difference in the equity of your home and will improve your homes resale for future years.
Lastly, stay away from any unnecessary remodels that could decrease your homes value.
As a homeowner, there are definitely things you don’t want to add to your home because it may decrease your homes value.
In fact, a popular item that may seem like a fun would be to install a swimming pool in your backyard. Adding a pool to a home can deter home buyers who are not looking for the extra expense of pool maintenance.
Another way you could hurt your homes value is by converting your garge into a living space or man cave. Most homebuyers think of the garage as a place to store cars, tools and other household items. If you get rid of the garage, where is all that stuff suppose to go? Also, if the garage conversion is not up-to code, your home will actually lose value!
A well maintained yard with mature trees, shrubs and a garden an increase the value of your home; on the other hand, a poorly maintained yard or just plain bad landscaping can have the opposite effect.
In the end, if you are trying to increase home value it is important to pay close attention to the things you are adding to your home. Otherwise, you might end up with costly renovations that decrease your homes value.
Are you looking to buy a home in the Omaha area? If so, contact the Fairfield Team and we can help you find the best home for you!