4 Equity Boosters when You Build a Home

When you elect to build a home, you can ultimately determine how much real value you add to the residence with several key choices. Building equity in a property provides for financial stability in the long-run. Your home equity is typically the single largest factor affecting your net worth, which leads to your ability to finance new purchases, protect yourself from bankruptcy and even retire at a reasonable age. Try implementing these steps into the building process in order to gain the most equity possible in the end.

#1 Focus on Location First

The location where you choose to build is the number one factor in the ultimate value of your home. Location means more than just the plot of land. You should consider the infrastructure in your area including: good school districts, proximity to necessities like grocery stores and public services in the area. Of course, if you are building a farm in a plains state, then you will have different factors to consider. For most typical residences, though, the services of the neighborhood will largely come into play when your home is appraised.

#2 Think About Resale

You need to focus on your home's value to a family other than your own from the get go. While it is appealing to customize a home you are building from scratch, evaluate the utility of these customizations against future real estate value. For example, you may have extremely modern taste. If you are building a home in an historic neighborhood, though, you may consider building a more traditional home because of the potential for resale. On the other hand, it may be important for you to have a one-level living space because you have physical disabilities. In this case, the utility of using the space while you are there is more valuable than future resale issues.

#3 Select Energy Efficient Options

Green homes are currently very popular. This is not just due to the trend to be more environmentally friendly, however. Greener homes actually reduce the total cost of living in the property. For example, energy efficient appliances use less gas or electricity, lowering your bills each month. Windows and doors that help seal in heat or cold will reduce the cost of temperature controlling the property. This saves you money while you live in the property, but it also makes the home appealing to future buyers, raising your equity in the home.

#4 Opt for Lasting Materials

Nothing will have more impact on your home equity than the materials you choose to build with. Instead of going for the flashiest options, opt for high quality, durable building materials. For example, using real stone over faux stone finishes will raise your equity in huge amounts. Opting for the highest quality roofing materials or plumbing will additionally lead to larger profits in the end. Making these investments instead of, for example, adding a pool will ultimately lead to a more valuable property over time. Ask your builder questions about durability when you select any materials for your project.

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