5 Smart Ways to Use Home Equity
One of the many benefits of owning a home is the opportunity to use the equity in your home to make home improvements. Whether you are planning to sell and want to maximize your selling price, or you simply want to enhance your home for your own enjoyment, let’s look at the home upgrades that add the most value.
As the saying goes, “the kitchen is the heart of the home.” Kitchen upgrades almost always add to a home’s value, not to mention the difference they make in your everyday enjoyment and convenience. You can start small and simple, such as replacing faucets, changing cabinet hardware and upgrading lighting. Or you can go all out and replace older, mismatched appliances with new, energy efficient options, upgrade flooring, and redo cabinets. Either way, you’re sure to enjoy your kitchen more every time you’re in it.
Whether you are selling your home or not, a dingy, outdated bathroom is a bummer. Brighten things up with new paint, regrout the tiles, change out the faucets, and get all new matching towels and linens for an instant upgrade. Of course, you can choose to go all out and completely replace all fixtures, redo the tile work and change out the flooring. Bathroom upgrades typically recoup up to 94% of the investment at the time of sale and are an excellent way to use home equity.
Add a Deck
Adding an outdoor deck is an upgrade that offers terrific ROI. That’s because it increases the living area without the cost and disruption of adding rooms to your home. Plus, it gives you space to entertain and enjoy the outdoors in a whole new way. A classic wooden deck is always a great investment, while a composite deck will yield an even higher return when you sell the home.
Concentrate on Curb Appeal
There’s so much you can do to improve your home’s curb appeal. From painting or replacing front doors and garage doors to adding a paved walkway and upgrading outdoor lighting, the improvements you make to your home’s exterior actually improve the whole neighborhood. Don’t wait until you’re ready to sell your home to boost its curb appeal. Do it for yourself and you’ll feel proud and happy every time you come home and see the beauty you’ve created.
Maximize Energy Efficiency
Older homes can benefit from energy efficient upgrades that will reduce utility costs. Adding extra insulation, Energy Star-rated windows and the latest appliances will go a long way toward adding value to the home, while making it more comfortable, too. And don’t forget the small details, like sealing any cracks around window, doors, and electrical outlets.