“equity in a property resulting from labor invested in improvements that increase its value”
After my clients buy a home, they often send me updates of the projects they have done. I love receiving these and seeing work we had discussed during the buying process become sweat equity. By sharing some of these stores it gives future buyers a glimpse of what is possible with some hard work and imagination. Purchasing a home can be financially taxing and many people get homes that need a little bit of love!! While not ideal for most it does give you the opportunity to put your own stamp on the home.
First up is Becky, a wonderful client and friend of mind. We have tackled some extreme workouts together and competed in two Ragnar races!! After a reasonably long search, we found the absolute perfect home for her right at the time COVID-19 kicked off, yes, we did get a bargain!! However, the siding was not well maintenance and below its aesthetic potential.Time for some sweat equity! Fear not, all it needed was a power hose, sander, fresh paint, and elbow grease!!
The home is now the talk of the neighborhood and has increased substantially in value. Curb appeal and first impressions matter. Some buyers will quickly dismiss a home that has much more to offer than they think!!
Next up is one of my favorites!! Young couple buying their first home with location being paramount. We got in immediately to see the home and had the offer in that afternoon, beating out the competition and getting into contract!! Again, this home needed some love, it was previously rented out by the owner and had some issues. All the carpets needed to be changed but before we put an offer in we had a sneaky look to see what was under the carpet…you guessed it, HARDWOODS and everywhere!!
In both cases the clients did most of the work, this is otherwise known as your sweat equity!! With labor typically making up 30%-40% (varies) of costs, a savvy D.I.Y’er can save a fair bit of money. Plus, there is something satisfying about doing the work yourself. And if you hate that sort of thing you can always contract it out!!
Best to consult a professional contractor before tackling a project. You don’t know, what you don’t know and getting electrocuted or punching a hole in a water pipe isn’t fun!!