Q:

How does an owner increase equity?

A:

Quick Answer

To increase equity in your property, first take steps to reduce the mortgage as quickly as possible. Then, make improvements to the exterior and interior of the house.

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Full Answer

  1. Reduce the mortgage

    Build equity by paying down your mortgage at a faster rate. Make extra payments whenever possible, or pay more than the minimum payment each month. Alternatively, reduce the mortgage term. If at all possible, do not refinance your house. The faster the mortgage is reduced, the faster equity increases.

  2. Improve the exterior of the home

    Make improvements to your home's exterior to boost its curb appeal. Replace old or fading siding, repaint your front door and fix any broken boards on the steps. Ensure that your lawn is taken care of, and pay attention to the appearance of your landscaping. Replace broken light bulbs, and remove any trash from the yard.

  3. Maintain the interior of the home

    Take care of the interior of your home. Clean out hard-to-reach areas such as skylights and attics. Ensure that your carpet is clean, and refinish wooden floors. Repaint your walls in neutral colors with a broad appeal. Invest in a professional cleaning service if you are selling the house to ensure it is spotless.

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