What do most people want to have in their house? Yes, a massive kitchen island is great. An amaZing ensuite is too. But it’s tough to beat…EQUITY.

What’s equity? It’s the difference between what you sell your house for and what you owe on it. And just like the cliché goes, the more the merrier.

Did you know there’s ways to put more money in your pocket that don’t involve selling your home? That’s right. It’s possible to increase the amount of equity you have in your home by doing some simple things that can add up to make a big impact. People will tell you to ‘time’ the market to sell for top dollar, or to do this or do that. There’s a lot of noise out there and can be tough to make sense of it all. That’s where this blog can help out. Below are 4 ways you can increase the equity in your home:

  1. Be patient: This is easier said than done, but it is possible. Depending on the time of year, how many homes are for sale where you live or what the interest rates are, if you can be patient for some of these factors to change and be to the advantage of a ‘seller’, you can increase how much your home will sell for.
  2. Renovate: When you renovate your home, you’re making improvements to materials, layout and style of your home. These can add up to increase the value of your home. Experts recommend making renovations to bathrooms and kitchens to make the greatest impact on a homes value. These areas of a home will carry increased costs to do the work, but they will also result in the greatest increase to home value.
  3. Make extra payments: If you get a bonus at work, come into an inheritance, sell a vehicle or something of value or maybe win some money…one of the best things you can do is put that money against your mortgage. Any lump sum payments against a mortgage go directly against the principal amount owing. This reduces future interest payments and also builds your equity. It’s a win – win.
  4. Refinance: When you evaluate your finances, sometimes it’s necessary to make some adjustments. Depending on what type of mortgage you have, fixed or variable, open or closed, refinancing your mortgage can be a great way to increase your equity. Talking with a financial advisor can help make sense of the different options available.

Most people want to have money leftover when they sell their house and these are four ways to help put you in a position to have that be a reality.

If you have questions about what you can or should to to maximize the equity in your home, let's connect and talk about it. 

Have an amaZing day!

People First. Homes second. 

Garrett Zimmerman

Realtor

(403) 506-5795