Leveraging the Hot Housing Market
The housing market is getting a lot of media coverage. Available homes are in such short supply that some home sales generate bidding wars. Comparable prices in your neighborhood are on the rise and if you need to move, now is a great time to sell your existing home.
Should you sell your home, however, you need someplace to go. It is great to sell your home during a hot market, but it is not so great to then turn around and buy during that same hot market. The first challenge is finding that next home (should your family be growing, or when it is time to downsize), and when you do find it, you might find yourself bidding up the price and burning up the equity gained during your prior sale.
In reality, most of us will not be selling our home any time soon. We will stay where we are and build memories in these places we call home. This is fine, and the hot housing market actually helps us do that. As the comparable prices (Comps) in your neighborhood grow, so does the equity in your home. This opens the door for an equity loan for any upgrades or home improvements you would like to make; or need to make. This investment in your home makes it that much nicer for you, your family, and the memories you will make.
Kitchen and bath upgrades are always popular for making the home a nicer place. Especially if you have tile and wallpaper from a bygone era, say when the Brady kids were still at home. Other homes are desperately in need of a new roof, or an energy efficient HVAC system. If you are still working remotely, you may need to repurpose a room into a home office. And as I have noted in this space many times, gutters, caulking everything and then a good coat of exterior paint go a long way to minimizing water intrusion and the damage this causes.
None of these are inexpensive projects, but with growing equity you can be confident that you can afford to do that which needs doing. In some cases, not doing these projects also has a cost in increased maintenance and repair costs. Limping along on an old, inefficient, HVAC system has a higher energy cost.
Taking cash out as part of refinancing your mortgage may be an option, depending on your current interest rate. A Home Equity Line of Credit (HELOC) or a home equity loan may be a better option. Get with your banker or loan officer to determine which solution is best for you.
Should you need help with any of those home improvements, Mr. Handyman Serving Greater Jacksonville would like to help. If we are not the right company to help you directly, we know many qualified service companies that might be a better solution than somebody you might find on the web, who you know nothing about.