Sweat Equity

Sweat Equity is a term used to describe the increased appraisal value as a result of home improvements done by the homeowner. In theory, improvements increase a property’s …

Sweat Equity is a term used to describe the increased appraisal value as a result of home improvements done by the homeowner. In theory, improvements increase a property’s desirability. By adding value to a home, the appraised selling price increases and therefore the equity, through the homeowners’ own efforts, or “sweat”

Typical sweat equity projects on the exterior of a home that can raise the actual value and “curb appeal” for a house are, landscaping and water features, or adding exterior decks, fences, or walkways. Interior projects that usually increase the value of a home are minor kitchen and bathroom remodels, or adding tile flooring.

Try Gemini Today! 123

The Gemini Exchange makes it simple to research crypto market, buy bitcoin and other cryptos plus earn Up to 8.05% APY!

Often, projects attempted by homeowners lacking experience and proper tools may add a perceived value but decrease the desirability of a home due to shoddy workmanship.

Simply, “sweat equity” means that the homeowner does the labor. Most often sweat equity projects involve “cosmetic” applications as opposed to major construction.

Share This:

In this article