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Branden Griffith is a Realtor doing business in Washington and Idaho with Schoenrock Griffith, a Spokane-based Windermere City Group LLC team.
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Your home is a bank account.
Most people may not see it that way when walking through a potential home and dreaming about raising a family, but building wealth and finding the home that feels right for your family are interconnected goals.
I remember saving for years, amassing what felt like a small fortune, only to watch it disappear when my wife and I made the down payment on our first home. Of course, it didn’t actually disappear. Instead, it was deposited into our mortgage in the form of home equity. Like any investment, though, it needs to be nurtured and maintained in order to grow and pay dividends.
Buying a first home is typically the largest single investment most people make. In fact, home equity accounted for an average of 70% of net worth for U.S. homeowners in 2024, making it their most valuable financial asset, according to the U.S. Census Bureau.
Are you making the most of your home’s potential?
Like any investment, factors outside of our control, like a global pandemic and historically low interest rates, will affect the value of our assets. As a neighborhood’s average price rises or falls, most properties will ride that wave, to an extent.
However, just like we aren’t content to watch our stocks flow up and down with the tides, we should pay constant attention to how the investment in our home is changing. Without a financial adviser telling us exactly when to trade or invest more into an asset, how can we proactively grow and protect our investment so that when we do sell, we have made the most for our asset?
It’s obvious to potential buyers when a home has been well cared for versus when a seller has rushed to complete projects just before listing. Routine maintenance, though sometimes tedious, can significantly impact the future value of your home and make selling easier when the time comes.
Staying on top of small tasks—such as maintaining caulking around tubs, touching up paint as needed, and fixing minor hardware issues—can make a home feel well-kept and more valuable compared to similar but less-maintained properties.
Instead of feeling overwhelmed by a long to-do list, consider following a home maintenance schedule that spreads tasks out across the year. This approach makes upkeep manageable and ensures your property remains in top shape.
While keeping your home up to date with modern finishes can boost value, not all renovations provide a good return on investment. According to The Wall Street Journal, a full kitchen remodel recoups only about 38% of its cost on average. Instead, focus on high-impact, lower-cost improvements such as updating cabinet hardware, replacing outdated light fixtures, and refreshing spaces with a new coat of paint
By focusing on these smaller updates, you can enhance your home’s appeal without overspending.
Even if you plan to stay in your home forever, regular maintenance saves you from future headaches and benefits the next generation of family that moves into your home. Staying on top of this work will also make your home more enjoyable to live in while you do live in it.
Another way to protect your investment is by ensuring you have adequate insurance coverage. If you purchased your home before the pandemic and haven’t reviewed your policy recently, it’s worth checking to ensure your coverage reflects your home’s current value. In the event of an accident, being underinsured can add unnecessary financial stress and seem like insult to injury.
Additionally, your savings account also can act as a credit card. Your home equity can be a valuable financial tool. With options like a home equity line of credit or a cash-out refinance, homeowners can tap into their equity for renovations or other financial needs. However, these tools should be used carefully.
Before borrowing against your home, consult with a trusted professional—whether a real estate adviser or financial planner—to determine whether your planned improvements will yield a worthwhile return.
If your goal is to stay in the home long-term, it might be more beneficial to save separately rather than finance projects with interest. However, if you plan to sell in the near future and your improvements will significantly increase the home’s value, such as adding square footage or an additional bedroom, leveraging equity could be a smart move.
Your home equity is only realized when you sell or borrow against it. If managed wisely, it can provide leverage for your next investment, help you upgrade to a bigger or more ideal property as I recently did, or serve as a financial cushion when downsizing in retirement.
With fluctuating rates and home-price appreciation stalling, it is more important than ever to control what you can with your investment, riding the wave higher on the highs and not dipping as low when the market shifts.
Even if you plan to stay in your home forever, maintaining it is like making regular deposits into a savings account—protecting your investment, avoiding future headaches, and setting the next generation up for success. Taking a proactive approach not only increases your financial return but also enhances your enjoyment of the home while you live in it.
Treat your home as both a place to live and a strategic investment, and you’ll be better prepared for whatever your next move may be.
Branden Griffith is a Realtor doing business in Washington and Idaho with Schoenrock Griffith, a Spokane-based Windermere City Group LLC team.