Selling with Equity

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modesto selling with equitySelling with Equity

The home you own is a risk-free investment that offers financial stability and a considerable return on investment. What is considered as capital gains on the sale of a home is now available as home equity. The primary goal behind selling a house is the profit acquired from home equity. In the real estate market, the term ‘home equity’ is the difference between the value of the house in the market and the amount of mortgage owed on it.

Now there are two types of equities: positive and negative. When you earn a profit from the sale of your house, you obtain a positive equity; but if the house is sold for less than what you owe, then you may taste the bitter experience of negative equity.

When to Sell For Positive Equity in Modesto?

In general, it is better to wait till a positive equity has accumulated before selling your house. This would enable you to walk away with a fat profit from the sale. If unfortunately you are forced to sell your house with a negative equity, you will find the task not only distasteful, but rather difficult. You would also need the permission of your lender for selling.

Equity Improvement

You can take several steps to improve the equity situation of your home such as home improvements. The term may sound fancy and expensive, but generally it is not. Home improvements require upgrading plumbing, cooling and heating, installing an electrical system, fixing the roof when necessary, and a bit of this and that. Homebuyers generally require assurance that the house is in a good and livable condition before purchasing it.

Quick Equity Improvements

Valuable improvements go a long way in improving your home equity, but there are certain improvements that don’t deliver a satisfactory return. For example, most kitchen replacements only provide a 50% return on what you originally spend on them. A quick way to frequently improve your home equity is a quick paint job every now and then, brightening up doors and cabinets. This works more than anything else. Home equity is additionally improved by cleaning up exteriors, repainting and tidying up the landscape.

Major Improvements

Major improvements are big tickets to boosting your home equity. A complete remodeling of the kitchen followed by the replacement or addition of a bath make huge home equity improvements. Homeowners generally spend a lot of time in their kitchens, and buyers with children tend to look for houses with additional baths and stuff. Remodeling and renovations definitely add more value to home equity.

So, keep this information in mind to be able to sell your property in a profitable way.

Call the Salonga Brothers – Your Key to the Central Valley

Eric (209) 480-3099

Jay (209) 985-2398