We’re in a historic period of equity gains for the average homeowner. The Federal Reserve estimates that home equity is up nearly 20% in the first quarter of the year to more than $27 trillion total, and in a "seller’s market," that trend could continue.
With equity gains expected to spur a record amount of home-improvement spending this year, many homeowners are looking to take advantage of those gains to upgrade their homes and to stimulate more growth in equity. Whether you’re considering small upgrades or major renovations, there are plenty of ways to add value or make your house more appealing to prospective homebuyers.
Make exterior improvements
Curb appeal is among the top things homeowners consider when looking for an equity boost or a competitive edge in the housing market, and for good reason – the exterior of the home is the first thing prospective homebuyers see, and catching their eye could mean earning their consideration. From small, cost-effective solutions that can help your home stand out to lasting renovations that can add value to your home, there are a several options you can consider to immediately give the outside of your home new life.
New House Numbers – Sleek and modern street numbers – especially in bold, modern fonts and neutral colors – are an easy, affordable and eye-catching way to add a trendy touch to your home.
Pressure Washing – One of the surest signs of the age of a home is the state of the sidewalk, patio and driveway. It's inevitable that normal wear and tear from foot traffic, tires, car washing and the elements of nature will discolor these areas. A periodic pressure wash to get them looking bright and new is an affordable way to maintain curb appeal.
Upgrade Garage Doors – An outdated or cluttered garage can really reveal the age of your home – especially if it’s operated manually, or if the design looks dated compared to other homes on your street. The National Association of Realtors' most recent Remodeling Impact Report shows that new garage doors are among the most popular items that appeal to potential homebuyers, and they provide the added benefit of improved security and lower energy costs. Investing in a garage door with a modern design is a great way to boost resale value.
Make interior improvements
Fresh Coat of Paint - One of the simplest, most cost-effective options to improve the appeal of your home is to apply a fresh coat of paint to your interior walls. Using fresh, neutral colors can not only brighten your space, it makes it easy for homebuyers visualize the space with their own personal touch.
Staining Cabinets – A new stain on your cabinets can help give your space a modern touch, whether you’re updating the cabinets in your kitchen, bathroom or other rooms. Uniform stains also give the home a cohesive appearance by connecting each space with a key color.
Appliances – Much like exterior features, appliances such as ovens, microwaves and refrigerators can age the look of your home – especially if the appliances don’t match or if they’re outdated in color and design. If you're looking to add value to your home, upgrading appliances is a great option.
Features – Aside from the added benefit of making your home more efficient, smart home technology is among the most important features homebuyers consider in their search, according to the Zillow Group Report 2020. Things like smart thermostats, video doorbells and smart lights give homes a modern touch while also being functional, enhancing security and saving money by monitoring and adjusting energy usage.
Add space
Pew Research Center estimates that as of February of 2022, two years into the COVID-19 pandemic, nearly 60% of U.S. workers are working from home all or most of the time. This lingering trend has greatly impacted homebuyers' desire for a more spacious home.
Whether you’re making physical additions to your home or creating the illusion of space by repurposing unused rooms, a spacious interior adds value to a home at a time when prospective homebuyers cite a need for space as the top reason to move, according to HomeLight’s Top Agent Insights Report in 2020.
That expansion could include more costly renovations, such as the build out of an attic or basement into an extra bedroom or entertainment room, major floor plan changes for an open concept kitchen or the physical addition of square footage to increase the size of your home.
Put your home equity to work
Whether you're looking to invest in quick upgrades or you're considering large-scale renovations, VyStar Credit Union has options for you to take advantage of the equity you’ve built!
Home Equity Loan – With the Home Equity Loan, you can get the full loan amount all at once and affordable payments with a low, fixed rate and pay the same mount each month.
Home Equity Line of Credit – The Home Equity Line of Credit option allows you to borrow what you need, when you need it at an adjustable rate. Your monthly payment depends on how much you borrow and on interest rate adjustments.
Learn more about VyStar's home equity loan and line of credit options.