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How to Put Sweat Equity to Good Use

by Max Mitchell 08/08/2022

When you start talking about what you can do to improve your property value, you may start seeing dollar signs. As the old saying goes, it takes money to make money. However, it doesn't have to be this way regarding your home.

Did you know you can boost your home's value simply by putting in some hard work and sweat equity?

What is Sweat Equity?

Sweat equity is defined as the work that a homeowner or investor puts into their property that will ultimately increase the home's value. You can calculate the sweat equity of any project by determining how much you can sell your property for now versus how much it would have sold for with those improvements.

How Can Sweat Equity Improve Your Property Value?

Sweat equity helps you improve your property value in several ways:

  • Pouring sweat equity into a chosen project — such as a kitchen renovation or a basement refinishing — makes your home more appealing to prospective buyers. 
  • Sweat equity reduces the overall cost of your project because you are not paying for additional labor. Ultimately, that allows you to enjoy a bigger return on your investment.

Should You DIY Your Next Project or Hire it Out?

Earning some sweat equity probably sounds pretty appealing, and it may make sense for you to take on the job yourself depending on the project. When deciding whether you should DIY your next home improvement project or hire a contractor, consider the following:

  • Your experience and skills. You will want to be adequately prepared to get the job done right.
  • Your current availability. You will need the time to complete the project.
  • Your budget. The amount of money that you have allocated for the project will determine whether you should DIY or not.

When you have the time, inclination and skill set, it's better to save your cash and attempt to complete your next home improvement project on your own. Not only will this lower the total cost of the project because you will not be paying for labor, but it also will increase the return on your investment. Sweat equity tends to pay off in big ways, so give it a try next time!

About the Author
Author

Max Mitchell

Max Mitchell epitomizes integrity, energy, hard work, and creative services in every detail of your real estate transaction. With over 40 years of experience in the Champaign-Urbana area, Max has established himself as a trusted and successful real estate agent. He is proud to be a Ramsey Trusted real estate agent, providing top-notch service to his clients.

Max's sales journey began at a young age, selling The News Gazette in his neighborhood. Since then, he has worked in every aspect of the industry, representing sellers, buyers, investors, and banks in both residential and commercial markets.

As a family man, Max holds a strong devotion to God and his beautiful wife, two children, and two lovely granddaughters. He's an adventurer by nature and enjoys floating over Champaign-Urbana in his hot air balloon, often traveling to attend the Albuquerque International Balloon Fiesta and other events throughout the summertime. Max also challenges himself with early morning cycling classes at Mettler Center and the YMCA, finding it a great way to recharge and connect with others.

Max's sales expertise has been shaped by renowned mentors such as Dale Carnegie, Tom Hopkins, Mike and Tom Ferry, and Brian Bufini. He believes in giving back to both the industry and the community. Max serves on the Illinois REALTORS Board of Directors, has been President of the Champaign County Associations of REALTORS, and holds a seat on the Champaign County Board in district 5. He remains active within the community, contributing his time and expertise to organizations such as Visit Champaign County Board, Champaign County Economic Development Board, and the Willard Airport Advisory Committee.

When it comes to working with Max Mitchell, you can count on five key qualities: Love, Integrity, Commitment, Passion, and FUN. With Max as your real estate agent, you can trust that your transaction will be handled with the utmost care and professionalism.