Whether you just purchased a home, or you’ve owned one for years, we have some homeowner tips just for you! Read on to find out some of our Team’s favorite tips for homeowners.
Gardening with a purpose!
We all know about curb appeal, but gardening doesn’t have to be limited to just having a pleasing aesthetic. Plan your garden to help you with energy savings!
Plant deciduous shrubs and trees to shade the southern and western walls of your home and your air compressor. In the spring and summer, the plant’s leaves will help shade your home. After the trees/shrubs lose their leaves in the cooler months, the sun will help to passively heat your home. #genious
The northwestern walls of your home receive the least amount of sun so consider planting evergreen trees there to protect your home from winter winds. Want to reduce your water usage? Consider planting native plants which tend to require less water and maintenance once established.
Choose the right project to tackle.
Thinking about adding a bathroom in your basement? Maybe you’ve thought about replacing your vinyl siding? If you’re considering a “non-urgent” project, you might want to check out the Cost Vs. Value report that Remodeling Magazine releases every year. Here’s the report for 2022.
The report compares the average cost for remodeling projects with the value of the said project at resale. Keep in mind that the report compares cost vs. value at a regional level. If you are comfortable providing them with your contact information they’ll give you the data at a city level.
Want to take it a step further? Reach out to us! Real estate agents can look at your specific market to determine what upgrades are common for homes that are comparable to yours. This may help you decide if the project you’re considering is worth your money and time!
Applying for the Homestead Tax Credit
If you haven’t done so already, you should apply for the Maryland Homestead Tax Credit. The Homestead Tax Credit limits the increase in taxable assessments each year to a fixed percentage.
Fill out an application to slow the rate of your tax increase. Though you can apply at any time, most homeowners apply within the first 6 months of owning a home. If you had applied in the past, 2007 legislation changed, and homeowners had to re-apply in order to continue eligibility. Legislation passed in 2021 that makes the credit retroactive for 1 year.
You can download a PDF application from the website, or you can apply online at:
https://sdathtc.dat.maryland.gov/
Consider getting a Home Equity Line of Credit
This is a great tool to help you prepare for the unexpected. If you ever have an emergency home repair or you decide to tackle a large construction project, the home equity line funds can help you cover the expense.
A Home Equity Line of Credit (HELOC) is just what it says it is – a line of credit based on the equity in your home. Wait, what?
When you apply for a HELOC, the lender will determine how much equity you have in your home by conducting an appraisal. Equity is determined by taking the market value of your home, less the amount of money you owe. For example, your home is worth $500,000 and you have $450,000 remaining on your mortgage. So, you have $50,000 worth of equity which can be a line of credit for you to use when needed (only some lenders lend 100% of equity).
If you decide to use the line of credit, it would essentially be a 2nd mortgage on your home that would be paid off when you sell your home.
Think a HELOC is a good option for you? Reach out to us. We are happy to refer you to local lenders!
Building Equity
Now that we’ve explained equity, consider building more equity in your home! Even if you aren’t planning on selling anytime soon, it’s never a bad idea to build equity. Consider adding exterior amenities such as a deck or patio. Get the basement finished or add an additional bathroom. The Cost Vs. Value report or insight from a Realtor is a great way to ensure you are on the right track!
One last quick tip – consider making an extra payment each year on your loan to help reduce your monthly interest expense a little bit at a time.
