Building Equity in Your Home Over Time

If you’re like the typical homeowner here in Ann Arbor, Saline or elsewhere in Washtenaw County, your piece of real estate is one of your most valuable investments and an excellent store of your wealth. Of course, as with all investments you’ll need your home to grow in value over time in order to see a positive return when you decide to sell. In this post we’ll share a few key tips on how to increase your home’s value and build your equity over the long term.

Building Equity in Your Home Over Time

Your Primary Goal: Full Ownership

Your home equity is defined by the total resale value of your home minus any outstanding mortgage debt or liens against it. For example, if you own a home in Dexter that can realistically be sold today for $230,000 but still have $40,000 in mortgage debt against it, your total equity would be $190,000. With this in mind, the obvious way to increase your home equity is to get your mortgage debt paid off so that you have full ownership of your home.

Adding to Your Real Estate Investment

So, what do you do once you own your home and aren’t repaying a mortgage each month? The next best way to increase your equity is by investing in renovations and upgrades. If you’re going to be selling in the near future, you’ll want to focus on those high-impact upgrades that attract buyers – redoing the master bedroom, adding granite countertops to the kitchen or redoing all of the fixtures in the bathroom. If you see yourself in your home for a while, consider lifestyle amenities that will increase your quality of life, like a built-in pool and hot tub.

Preventing a Decline in Your Home’s Value

A common mistake made by homeowners is to delay important pieces of home maintenance due to the cost or hassle with having it completed. However, neglecting your home is an excellent way to see its value decline – especially when dealing with something serious like a roof replacement or a foundation repair. Even if your home seems to be in good health, it’s worth having a home inspection every few years to see if any structural areas are in need of attention. Remember: potential buyers will have your home inspected numerous times, and anything that comes up will be used against you during the negotiation process.

Realizing the Highest Return when You Sell

All of the time, effort and love that you’ve put into building your equity will be worth very little if you can’t extract that value through a high price when you decide to sell your home. In order to receive top dollar for your piece of Ann Arbor real estate you’ll need to work with experienced real estate agents that understand the intricacies of our local market and how to market your home to attract buyer interest.

When you’re ready to sell, we’re ready to help. Contact Kathy Toth & Team at your convenience at (734) 669-0337 and we’ll share how our approach to real estate marketing has helped individuals and families across Washtenaw County sell their homes.

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