Signature Intl Premier Propert
Sally Masters, P.A. , Signature Intl Premier PropertPhone: (239) 253-1579
Email: [email protected]

Sweat Equity: What It Is and Why You Should Care

by Sally Masters, P.A. 11/14/2021

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

Sally Masters, P.A.

Trustworthy, reliable, hardworking---a committed and dedicated Realtor who has earned the respect and admiration of her peers and the many clients who have called on her to consummate an important Real Estate transaction.

For over two decades, Sally Masters has been successfully listing and selling homes throughout Naples, Marco Island, Bonita Springs, Estero, Ft. Myers and Cape Coral and surrounding areas. Today, she is recognized as one of Southwest Florida’s most outstanding marketing, negotiating and sales professionals. In 2018, this native of London, England joined the Signature International Premier Properties team, bringing her vast knowledge and insight of the residential, waterfront, golf course and estate home marketplace to one of Florida’s fastest growing Real Estate Companies.

Sally has few equals in regards to her list of industry-wide certifications and designations. They include being a Certified Luxury Home Marketing Specialist and an Institute Luxury Home Market member. Sally has earned a CIPS Designation (Certified International Property Specialist), the RSPS Certification (Resort and Second Home Property Specialist) the SRES Designation (Senior Real Estate Specialist) and the MRP Certification (Military Relocation Professional)

In addition, she has been the recipient of the prestigious Ad Miller Award, recognizing an individual who has contributed to the enhancement and preservation of private property rights. In August, 2018, Sally was featured in Forbes Magazine as a Real Estate Market leader for Southwest Florida.

Sally Masters’ network of clients stretches far and wide- both beyond the United States and throughout Canada and Europe. For years, she has successfully worked with the many international buyers and sellers who invest and call home to Naples and its surrounding environs.

Going above and beyond for her many clients and her commitment to keep her buyers and sellers well informed throughout the entire transaction process is what truly defines Sally’s highly acclaimed work ethic. She constantly receives referrals and new business from her many satisfied clients who enlisted her as their broker of choice and remain in close contact.

Sally continues to give to the community she has called home for many years. She is the active and proud founder of the www. Adopt-A-Soldier.org, a charitable organization that sends packages to our troops stationed overseas.