Opinion Residential

Selling Equity in Your Home Can Be an Easy Proposition

Selling equity in your home can be the smart move, depending on your situation. Maybe you want to build your dream home? Maybe you want to take that vacation you’ve always dreamed of.

Selling equity in your home means making your home irresistible to buyers.
Selling quickly isn’t rocket science. There are tried and true methods to help you get it sold fast and get your equity out.

However, sometimes it all depends on your ability to sell quickly. You do not want to stay in your temporary apartment for 6 months before your old home is finally sold!

Here are some tips that will help.

  1. With good landscaping, you can transform the exterior look and feel of your home. Apart from speeding up the purchase, you can also get a higher price. You can hire a landscaper to get this done or do it yourself.
  2. Update outside lighting, get some fresh potted plants for the front door and repaint the front door. This is one way to improve the feel good factor for your home.
  3. Ensure your entrance hall creates a great first impression by giving it a neutral lick of paint. “Take away all bulky furniture and upgrade the lighting” says the spokesperson at Pert Home Builders “Consider adding a bit of color with a rug and other minor accessories”.
  4. Install brighter modern lights to give your home a sunny and modern feeling. Wrong lighting can make your home feel dark and drab.
  5. Repaint your dark rich walls in more neutral finishes. Paint color is a personal choice for many so make sure you have left room for customization.
  6. Major overhauls in your bathroom and kitchen should be avoided unless your real estate expert believes the project makes good sense. However, you can update the lighting, install new faucets, mirrors and doorknobs, if they are worn out.
  7. Buyers get disillusioned with a property if there is a lot of clutter. If there are stored items in the house consider moving them away before viewings are scheduled.
  8. On the day of viewing, do not bring your pets along. When you have pets around, pet lovers will pay more attention to the pet and less attention to your property. Potential buyers that do not like pets will feel uncomfortable during the property viewing and will want to leave as soon as they can.  A buyer with a pet allergy will be put off by the home completely. Don’t forget to take out all pet bowls, baskets and litter trays.
  9. Make sure your backyard is neat and tidy. You should ensure it looks every inch a welcoming space. Consider getting inexpensive furniture, outdoor lighting and potted plants to give the garden a more appealing look.
  10. Ensure that the property is always sparkling clean prior to any viewing. If you still live in the property, get rid of household waste and make sure there is no litter in and around the home at the time of viewing. Make sure the home smells great too!

How to Use Your Home Equity Efficiently 

The best thing about home equity is that it increases when your home’s value rises. Aside from making renovations, you can maximize your home equity by making a larger down payment and paying more toward mortgage monthly.

Capital growth or capital appreciation refers to an increase in the value of an investment or asset over time, which can also increase your home equity. However, waiting for capital growth needs patience since it often involves gradual long-term appreciation. 

Once you increase your home equity, it’ll be an easy proposition to sell it. For instance, you can buy a second property by using home equity efficiently. You can use it as a security deposit for a home loan without cash outlay. The term is cross-collateralization. You can invest in a new property without waiting until you pay off the first property. 

However, cross-collateralization also comes with a risk like other investments. Both properties could be repossessed if you can’t pay off the debt on one property. So, before you use home equity, plan where you can pull out a steady income stream to pay your mortgage loans. For instance, you can rent out the first property as transient accommodation if the property is near tourists’ spots for additional earnings. 

Takeaway

With these tips, selling equity in your home and be much quicker and get you closer to moving into your new home.

About the author

Tre Pryor, Editor-in-Chief

Tre Pryor is the recognized expert Louisville Realtor who can:
  • List and sell your current home in Louisville,
  • Help you purchase your next Louisville home, or
  • Guide you in your relocation to Louisville, Kentucky
» Contact Tre now!