Your property value is a moving target. The value you had just six months ago may be completely different today. In many markets home prices and values have continued a steady climb for the better part of this decade. With that, you may be sitting on more equity than you think. Tapping into that equity can be as easy as applying for a home equity line of credit. This acts as an open checkbook where you can withdraw money and use it as you like. Instead of using the funds on vanity items that offer little to no return you should use it to further increase the value of your home. With the right improvements you will not only improve the enjoyment of your home, but you will increase the long-term value as well. Here are the four best ways to take advantage of your home’s equity.
Update Kitchen/Bathrooms.The kitchen has replaced the living room as the focal point of the house. Regardless of the house people will gravitate towards the kitchen. A modest kitchen upgrade can make it feel like you are moving into a new home. With any kitchen update you need to assess the cabinets, floor, walls, countertops and appliances. A full kitchen remodel can cost anywhere from $10-20,000 depending on specific tastes. You can also choose to update just one or a combination of these items. The same is the case with the bathroom. Replacing the dated shower or sink won’t be cheap but it will give the room a fresh look and add thousands to the value.
You don’t need a pool to have a deck. A deck has been proven to provide some of the best return on your investment for a home. Like any other home improvement there are many options with the deck. Even a small, simple deck in the backyard is much better than walking out to nothing. A deck will make the yard feel like destination and give you a place to enjoy in the Spring and Summer.
Looking back at home trends can be a comical exercise. Tastes and trends certainly change over time, but the walls and the floors are almost always the first two things guests notice. Over the past decade there has been a growing trend towards hard wood flooring. There are many more types of hard wood or hard wood alternatives than ever before. Home buyers and owners prefer the look and the ease of maintenance hard wood provides over carpet. Your home equity line of credit is the perfect source to help transition from carpet to hard wood. Depending on how many rooms you have and the type of flooring you want you are easily looking at spending a few thousand dollars. With the right flooring you can have it for decades without having to worry about updating it every few years.
Extra Half Bath. There is a tremendous difference in a home with two, two and a half, or even three bathrooms. It is not a stretch to say that an extra bathroom could net you tens of thousands of extra dollars. If you have a basement you should look at where you can add a half bath. You may have to get creative and possibly knock down a wall or two but in the end, it could be the best way to use that space.
If you haven’t researched your property value in a while you may be sitting on much more equity than you think. Give us a call for a property assessment to see if you have equity you can tap into.