Ways to Boost your Home Equity Value

The home equity value that you have is most likely one of your greatest assets. For many homeowners, their home equity represents one of the only sources of emergency funds that they have available. When you live in an unpredictable economy, it is essential that we have as much emergency cash as possible. A high home equity balance gives you some certainty in uncertain times. Therefore, it is essential to do everything that you can to boost the home equity value over the years. There are a number of things that you can do to boost your home equity value. Here are a few of the best ways to do so.

Install Hardwood

Hardwood flooring is one of the best ways to add value to your home quickly. Many real estate professionals have said that putting a new hardwood floor in could raise the value of your home by as much as 10%. When we are talking about the overall value of a house, this can be a substantial amount of money. Hardwood looks beautiful and it adds another selling feature to the house. Hardwood helps sell homes and in a competitive market, you need every advantage you can get. 

Hardwood is something that is permanently attached to the foundation. When something is permanently attached, it becomes part of the house. This means that you are actually adding something to the house which gives it value. While hardwood floors might seem expensive, you are doing something very valuable for your financial future and the potential value of the house. 

Add On

Adding on to the house is another fool-proof way to add value to your home. Doing this yourself is not usually recommended unless you have some experience in this area. Finding a good contractor that can do the work for you will make the process simple and allow you to get a professional-looking job. When you are dealing with your home, you do not want to take any chances. Make sure that a very qualified contractor is doing the work. 

When the value of a house is calculated, the equation always involves square footage. They will determine the square foot value of comparable houses and then multiply that number by the number of square feet in the house. Therefore, when you are adding square footage to the total of the house, it means that you are adding overall value to the house. This is one of the best ways to directly add money to the value of the house. 

Bi-Weekly Mortgage

A bi-weekly mortgage does not involve doing anything specifically to the house. However, it is a great way to raise the value of your home equity. A bi-weekly mortgage is a simple process that results in you making half of a mortgage payment every two weeks instead of once a month. This basically means that you are making one extra payment per year which reduces the principal balance faster than a regular payment plan. 

 

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