How to Increase Your Equity Over The Next 5 Years
The Amy Jones Group
Did you just purchase a home or plan on selling in the next 5 years? It is important to many of us homeowners to know if we will make a profit from selling our homes. Many want to be able to upgrade when purchasing their next home, but need enough equity to be able to do so. Here are some tips of what you can do to increase the equity of your home over the next 5 years.
1. Follow The Market
There are many ways to keep up with the Real Estate Market! Checking out your local news reports or keeping in touch with your Real Estate Agent are both great ways to get a market summary. One of the most accurate ways is to head straight to the source. Every month, The Cromford Index releases updated statistics on where the market sits in your area. This report will show the current inventory rates, days on market and buyer demand. This is great information because twice a month, these reports will compare and contrast where the market is compared to previous markets and past years. This gives all of us a snapshot of what the market is currently doing and will do in the near future. Following these reports will help you keep on track with the value of your own home. Check it out below!
Contact us or come by the office for more information on the best way to stay up to date with the Real Estate Market:
2. Appreciation
Naturally, the market is going to appreciate over time. The economy will have slow-downs and recessions in order to keep balance, but plan on the value of your home increasing in a 5 year period. In order to ensure that the value of your home increases outside of the market, includes the tips below to keep your home in great shape or even better shape then when you purchased. You'll be happy you did!
Looking for some advice on where the market sits currently? Reach out to us and we can help explain!
3. Renovate
You have seen it over and over again on HGTV. A home designer brings in a remodel crew and transforms a home into a masterpiece. We all know that this is going to increase the value right away. But! Not everyone has the same man power and bank account to completely remodel or flip a home in a couple of weeks. Luckily, you can make some amazing renovations over time that will increase the value of your home after 5 years.
If selling in 5 years is the plan, sit down and map out what to update or upgrade each year that fits in your budget. Also, make sure that the investment you are putting into that renovation will align with the equity you are hoping for once you sell. If you overdo it, you may end up spending more money than your home will be worth once it's time!
Sit down with one of our mortgage lenders to talk about your options when selling and moving into a new home!
4. Add Value
Renovating is one way to add value to your home. Some other ways include staging, following our tips for what to do while your home is listed for sale and making it easy for buyers to access the home once it's for sale as well. Adding value does not have to include spending any money on your part. Making sure to get the right advice from your Real Estate Agent on what to do when selling or how to present your home goes a long way!
Thinking about making a move? Start your Buyer search here:
5. Maintenance
Maintaining your home over time is so important! Even if you do not end up selling in 5 years, making sure to maintenance certain items throughout each year will ensure longevity and maintain your home's value. Some items that should be maintained seasonally are your AC units, pool pumps, window seals, door seals, exterior cracks, interior cracks, irrigation systems, plumping, etc.
Just like your car, your home has daily wear and tear from items that need replaced for proper operation and overall appearance. Items do go out of style and Buyers do appreciate trends, but when everything is properly functional, it can give them the peace of mind they need to choose your home over another.