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
Rudden|Bobruska Team
Gary Rudden, Lisa Rudden, and Nick Bobruska
RUDDEN BOBRUSKA TEAM
What sets your team apart from other real estate teams?
There is no team out in the market that offers what we do. All of us are Realtors, but
we each have specialized roles, which make our team so unique!
After decades of living and selling real estate in the DMV, we have established
ourselves as one of the top real estate teams with our market expertise and
cutting-edge technology. Our savvy high-tech marketing is on every website
and social media source. We have a huge network with other top agents, which
helps to premarket homes and discover homes for buyers before they reach the
open market. Our services include professional in-house staging services, broker
expertise in negotiating and navigating contracts, and buyer representation in all
price ranges. Each client has different needs and we create a marketing plan based
on those needs.
Our most distinct feature is our in-house construction and renovation team. We
are literally a full-service, one-stop shop when selling or buying a home!
How does the in-house construction and renovation team work?
All work is managed and completed through our licensed and bonded construction
crew. No need to call outside contractors. We are like “HGTV,” but we just don’t
have a show! Whether it’s a small makeover or a major renovation, we do it all. Our
sellers love this aspect of our team because we make preparing your home for the
market so seamless. Our buyers love the advice and insight we can give for future
renovations and repairs.
Having a licensed Maryland Home Improvement contractor as part of our team
along with the knowledge, experience, commitment and services that we offer, truly
puts our team as a vanguard in the real estate industry.