When you start talking about what you can do to improve your property value, you may start seeing dollar signs. As the old saying goes, it takes money to make money. However, it doesn't have to be this way regarding your home.
Did you know you can boost your home's value simply by putting in some hard work and sweat equity?
What is Sweat Equity?
Sweat equity is defined as the work that a homeowner or investor puts into their property that will ultimately increase the home's value. You can calculate the sweat equity of any project by determining how much you can sell your property for now versus how much it would have sold for with those improvements.
How Can Sweat Equity Improve Your Property Value?
Sweat equity helps you improve your property value in several ways:
- Pouring sweat equity into a chosen project — such as a kitchen renovation or a basement refinishing — makes your home more appealing to prospective buyers.
- Sweat equity reduces the overall cost of your project because you are not paying for additional labor. Ultimately, that allows you to enjoy a bigger return on your investment.
Should You DIY Your Next Project or Hire it Out?
Earning some sweat equity probably sounds pretty appealing, and it may make sense for you to take on the job yourself depending on the project. When deciding whether you should DIY your next home improvement project or hire a contractor, consider the following:
- Your experience and skills. You will want to be adequately prepared to get the job done right.
- Your current availability. You will need the time to complete the project.
- Your budget. The amount of money that you have allocated for the project will determine whether you should DIY or not.
When you have the time, inclination and skill set, it's better to save your cash and attempt to complete your next home improvement project on your own. Not only will this lower the total cost of the project because you will not be paying for labor, but it also will increase the return on your investment. Sweat equity tends to pay off in big ways, so give it a try next time!
About the Author
Nancy Roberts
Nancy Roberts Realty was founded to provide integrity and innovation, honesty and good old-fashioned customer service. Our mission is to provide the most professional real estate services available in Western North Carolina (including Burke, Catawba and Caldwell Counties.) With our expertise and dedication, we will guide you through buying or selling.
Nancy Roberts Realty was founded on integrity, innovation and good old fashioned customer service. We treat you the way we like to be treated with honesty and respect.
We are relationship people, your not just a customer to us but a new friend. We are skilled at matching people with properties - we listen carefully to your needs to find you the perfect property.
Our mission is to provide the most professional real estate services available in Western North Carolina (including Alexander, Burke, Catawba and Caldwell Counties.)
With our expertise and dedication, we will guide you through each step of the buying or selling process, including choosing a lender, home inspector and moving company.
Let us help you find your property today!
