By Gabriel Knight
People, who plan to sell house often aim to make profit from the equity in property. In the world of real estate, home equity is considered to be the value of home in comparison to what’s owed on it. If you get to sell your house for more than the amount you owe, then it’s called the positive equity. On the other hand when you sell your house for less than what you owe, it’s negative equity. Positive equity is what sellers generally look for.
It’s essential to sell at the right time
You must make the move only when the time is right. You should wait for your house to be in the positive equity state. By selling a positive equity house you can make considerable amount of profit. However, it’s not that easy either to sell an underwater or negative equity house. Through short sale you can sell your underwater house. For that you’ll have to convince your lender first. This will hardly help you to make any profit. So, before you decide to sell your house, make sure the time is right.
How can you make the most of equity and sell house to make profit?
Equity is an extremely essential thing that every homeowner should take care of. This will not only help you to make the most of homeownership but your chances of making profit will increase also. There are numerous ways through which you can increase the equity in your property. Some of the ways have been described below:
1. Take care of your monthly mortgage payments: Maintaining regular mortgage payments help to increase equity in property. So, you must make it a point not to miss your monthly mortgage payments. The more you’ll pay the better it’ll be for you. If you’re facing troubles in continuing the monthly payments, then try to accumulate more resources. Do, some part-time job to earn more. Follow a shoestring budget to simplify the monthly payments.
2. Improve your house: This may also help a lot to improve the equity. You should start with improving the indoor systems, for example take care of the plumbing and wiring. If possible try to paint your house. These small yet significant changes will make your house more attractive for the prospective buyers. As a consequence, you’ll be able to get the right price of your house. So, this will increase your profit considerably.
3. Control the future equity increases: It’s essential to take care of the future equity increases as well. Till the last quarter of 2007, homeowners could count on comparatively huge annual equity increases. By 2020, there are chances of 1% or 2% equity improvement in the housing market. This is definitely a vital factor that people should consider. This will help a lot to take the right step at the right time.
By following these 3 easy ways you can stay safe with the equity in your house. Once you get to control the equity, you can easily make profit by selling your property. So, just follow these ways and be a bit responsible with your mortgage to make the most of homeownership.