How to Maximize the Equity of Your Property

There are three basic ways to build equity in your property. You can pay off your mortgage and maintain the house and property. You can improve the property so that it is more valuable. Or you can work to improve the quality of your neighborhood and community.

It’s best to try to work on all three of these things as frequently as possible. The more consistent effort you put in over the years, the more equity will build. Further, your efforts may work to bolster each other, leading to higher value retention over time, no matter what the outside economy may be doing.

“Sweat Equity”

If you can DIY a few home improvements, you may be well on your way to increasing the value of your home. However, it’s important to note that poorly done projects may actually decrease equity. If you’re looking to DIY, make sure you’re doing the best job you can and that the improvements you make are designed to last.

Land Improvements

Depending on your situation, improving the property so that it serves a purpose could add substantial value. Whether you’re looking at setting up hunting cabins on old farms for sale in Michigan or revitalizing those same properties to be working farms again, these are two situations where it would be easy to build up and maximize the equity of the property.

Plant Trees Now

Mature trees will increase the equity of your property over time as the height of these trees is linked to the value of your property. However, when you plant these trees, make sure they are far enough away from the house that their mature branches will not interfere with the roofline.

Trees can also be problematic if planted over important power lines and cables, or if planted in the path of these same lines. Before you dig, make sure you have these lines and cables marked so you don’t accidentally plant a tree that needs to be removed during major utility work or if it becomes a fire hazard.


Patios, decorative privacy fences, mature flowers, and hedges- all of these things add equity to your home. Not only that but these features, being somewhat rare and difficult to produce without months or years worth of time for them to become established, can make your home sell more quickly even in a crowded market.

The good thing about landscaping is that if you’re going to do something yourself, this is one of the few places where it’s difficult to go wrong. Not only are landscape projects reasonably straightforward, in the case of plants and fences, but you’ll also need to maintain them over time. That means having knowledge in their installation and care will be beneficial to you as well as the next owner of the property if there is one.

Focus on the Kitchen and Bathroom

If you want to make interior improvements, the kitchen and the bathrooms are the first places you should look before making any significant upgrades. Updating a kitchen or bathroom can add more value to a home than more general updates as these rooms receive the most attention from potential buyers and appraisers.


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