As the real estate market gets back into full swing this spring, many homeowners – both those trying to sell a home and those buying and wanting to improve the properties they are moving into – will be looking for ways to boost home equity. One of the fastest ways to accomplish this is to pay down mortgage balances, but these days most consumers are having trouble just paying their bills and they cannot afford to apply extra funds to pay down mortgage principal. Another way to raise equity is to lower the cost of a mortgage through a refinance, but doing a refinance can be costly unless you can get a substantially lower rate. These days mortgage rates are trending upward even though prices are remaining stagnant, so doing a refi to raise equity is not a practical or feasible option for most homeowners.
That leaves home improvements, and if you are able to pay a contractor or do the work yourself, these may be the most sound and sensible way to add value to a home in 2010. Contractors and builders have experienced a drastic slowdown in their industry so it is now possible to hire qualified experts at discounted prices in order to get the job done. Painters, plumbers, carpenters, and landscapers have all been adversely affected by the housing recession, so this may be a great time to do those projects that add market appeal to a home. Doing home improvements will also enhance your quality of life for as long as you remain living in the house or condo that you improve, so it pays off in that way as well.
Concentrate on areas that really count, though, to avoid spending money that will not add dollar-for-dollar value to the property. That usually means sticking with neutral colors and decorating schemes and not going overboard with landscape designs or interior decoration. Improve a bathroom by updating the fixtures, for instance, or swap out your old appliances in the kitchen for newer and more energy efficient ones. Paint and caulk as needed to help insulate the home – which saves on energy costs – and you can also add instant curb appeal without spending a lot of money.
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