Well, most people don’t, but you probably have a bunch of cash stashed in your home and not even know it. It’s surprising how many people don’t realize how much equity and how much cash they have access to.
What to do with all that money?
Actually, you can use the equity to your advantage in several ways. Many people are taking equity loans to make home improvements. You can effectively put equity back into your home by remodeling and updating certain features. Remodeled rooms, especially kitchens and bathrooms add the most value, and cosmetic touches will improve the salability of your home.
Borrowing equity has one great advantage; the interest is tax deductible. However, keep in mind, if you have an equity loan, when you sell your home you need to gross enough to pay off both the first mortgage and the outstanding equity debt. Always check with your tax advisor or CPA about the tax advantages of your individual situation.
Before you decide to make a major decision about any home improvement using your equity, consult with a REALTOR to see what features are hot with today’s home buyers. A real estate professional can help you determine if you will be able to re-coup that money when you decide to sell.
If you don’t have any desire to make home improvements and you want to know how much cash is really stashed in your Knoxville home, just give us a call for a free market analysis. In today’s market you may be able to move-up to a larger or newer home for the same or a little more than you’re currently paying.
More information is available about the Knoxville Real Estate market as well as current Knoxville Homes for sale by visiting my Knoxville Homes Web site.
David Hamilton
Ferguson Realtors
Cell 865-310-0636
Office 865-690-1300