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The most obvious way to build equity in your home doesn’t involve any kind of project at all, but for those looking to build equity without changing their house this is an option. You can increase your equity by reducing the amount you owe on your mortgage. There are many ways you can do this. For new homeowners, you can put down at least 20%, if not more. The larger your down payment, the less you will owe. If you already have a mortgage, you can do things like making an extra mortgage payment each year, adding an additional amount to your payment each month, or paying bi-weekly instead of monthly. All these things can potentially lower your mortgage without completing any home renovations.

Now, let’s talk about home projects that can add value to your home. One of the smartest investments you can make as a homeowner is to make your home more energy efficient. Not only will you save yourself money as a homeowner and help the environment, but you’ll also increase the value of your home and make it more attractive to potential buyers. There are many options for upgrades, like installing solar panels, upgrading to energy efficient lighting, heating & cooling systems, and updating all windows and doors. These are all things that will make your home more energy efficient and increase value thus adding equity.

Another way to add value to your home is to add square footage or living space. Whether it’s expanding existing living space or adding an addition to the existing structure, growing your space will grow your equity. Adding additional bathrooms or bedrooms is always a smart move. Knocking down a few walls to expand your kitchen and open the space can also give your home value a boost. When it comes to adding square footage, think of the most practical ways you can achieve this. Think of what potential buyers look for in a home. You can also create “living space” out of wasted or unfinished space. For example, think of the value of a home with an unfinished basement versus one with a finished basement.

If you’re looking to make a big impact with a small budget, choose a room that has a high return on investment when it comes to improvements. There are two rooms in every house that can have a huge impact on the value: the kitchen and the bathroom. Adding a bathroom or expanding an existing one is a smart move if you’re looking to add value to your home. Kitchens are the most remodeled room in any home. The kitchen is often the central hub of the household where people spend a lot of time, so it is important to keep them updated and modern. Making improvements that will make a kitchen more practical and presentable will help add value to your home.

The outside of your home also has room for equity growth. Adding new siding, replacing shutters or moldings, and replacing the roof, can all add value to your home. Adding a deck to the outside of your home can also increase its value.

These are just some of the ways you can add value to your home and boost your equity, but it’s important to keep in mind that you won’t always make back what you spent. There are many factors that can influence this. If your goal is to add value to quickly sell your home, it’s best to keep your design choices neutral. If you’re planning to live in the home for a long time then you can make more personal choices for your projects, but keep in mind the impact your improvements might have on the value of the home.

One last but important point to consider is the market value of your home. Not only should you be aware of the market value of your home, but you should also be aware of the maximum value of your home and of the homes around it. You don’t want to do renovations that will make the house worth more money, if it never sells for that price in the neighborhood. You can also watch the market value over time to look for trends or patterns. This way if you’re not planning to sell until later, you will know when the best time to sell is. You will see if there are times throughout the year that the value peaks.

Looking for a way to finance home renovations? Check out Citizens Savings Bank’s Loan Specials page, which provides more information about our Home Equity Loans and Lines lending options. Always speak to a trusted lending professional about your options. Subject to credit approval.

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Citizens Savings Bank has multiple locations throughout Lackawanna, Wayne, and Monroe Counties. For branch locations and hours, visit our website. We also have a Customer Support Team ready to answer any questions you may have. Call us today at 1-800-692-6279 or email [email protected]. Member FDIC. Equal Housing Lender.