Financial Responsibility: How to Be a Money Minded Homeowner

65 percent of Americans are homeowners, and they all have one thing in common: they want to protect, and possibly increase, the value of their prized possession.

Going by the median prices of U.S. homes, you’ve certainly spent a fortune to buy your home. Unlike most big-ticket items like vehicles, real estate property has the unique ability to gain value over time. So, if you were to sell your home two decades from now, you’d want to pocket an impressive profit.

That’s possible, but you have to practice financial responsibility as a homeowner. This means always being mindful of your property and taking practical steps to increase its value.

Read on to learn how to be a money-minded homeowner.

Make a Smart Home-Buying Decision

Being a financially savvy homeowner starts before you become an actual homeowner. It begins when you’re on the hunt for the property you’ll call home.

You must strive to purchase a property that fits the description of a smart investment. You see, although real estate generally appreciates, property values are still subject to the forces of supply and demand. So, if you purchase a pricey home that’s been on the market for years, there’s a good chance that its value will depreciate because of the low demand.

The biggest factor to consider when buying a home that will appreciate at a higher-than-average rate is location. Ideally, you want it to be located in a growing neighborhood, where property prices are forecast to keep rising over several years.

It’s also important to hire an experienced local realtor to help you find a property that offers the best value.

Stick to a Maintenance Schedule

At home, things will always break down. Drains will clog, floors will chip and crack, walls will get stained…you catch the drift.

Are you the kind of homeowner who waits until something breaks down before you can fix it or you’re the kind who does preventative maintenance? If you’re the latter, thumbs up! Preventative maintenance is one of the most effective ways to save money at home.

Therefore, it’s prudent to perform routine maintenance on your home. Call in specialists to check the drains, electric wiring, foundations, and other parts of the home from time to time. This way, you’ll be in a better position to catch problems early on when they can still be fixed easily and cheaply.

If the home has solar panels, don’t forget about them. Although they’re built to last several years with little to no maintenance, cleaning them regularly goes a long way in enhancing their durability. This guide on how to clean your solar panels will come in handy.

In the same spirit, don’t procrastinate on repairs. It’s understandable that some repairs that don’t affect the livability of the home can wait, but they could get worse over time. If you notice foundation cracks, for example, prompt repairs will prevent the cracks from extending, saving you from a huge repair bill down the road.

Invest in the Right Home Improvement Projects

You’ve heard that making home upgrades is the best way to increase the value of your property. That’s true, but in terms of value addition, home improvement projects aren’t created equal. Some projects are pocket-friendly but deliver an impressive ROI, while there are others that can be high-cost but offer little returns.

As a money-minded homeowner, it’s your responsibility to find the most valuable projects. Don’t just go with everything you read or hear. Kitchen upgrades, for example, are well-known to offer good value, but that doesn’t mean you go overhauling your kitchen if your current kitchen is already one of your home’s best features.

To find the best improvement projects, start by evaluating your home. What is it that you don’t like about it? Are there features it’s missing that comparable homes in your neighborhood have?

If neighboring homes have a swimming pool, for instance, it’s a no-brainer that building a pool will yield a good ROI.

That being said, don’t only focus on the big projects. The small details matter as well. A fresh coat of exterior paint, garden landscaping, a firepit, and switching to LED bulbs will all add value to your home.

Stay Abreast of Real Estate Market Developments

Once you’ve purchased your home, you want to settle in and enjoy your investment. The last thing you want to have in mind is the state of the local real estate market.

Unfortunately, if you’re a financially savvy homeowner, you have no choice but to keep an eye on what’s happening. How are property prices trending? What about the mortgage rates?

When you’re updated on market development, you’ll be in a good position to make decisions that are in the best interest of your finances as a homeowner. For example, if you bought your home on a variable-rate mortgage, you can refinance the mortgage and get an even better deal when mortgage rates drop, as they did in 2022.

If you plan on selling your property at some point, monitoring market prices will inform you of the best possible time to sell. If a strong sellers’ market emerges, you may want to put the house on the market, as that’s when property values are highest.

Financial Responsibility and Homeownership Go Together

You’ve made a big financial decision to buy a home, but that’s not where it ends. To be a successful homeowner, you must exercise great financial responsibility. This article has fleshed out some money management tips that will come in handy, but you have to put them to use.

Do you need more money-saving tips and advice? Explore the real estate section of our blog.

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