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Posted by Melissa Lynn Galland on Aug 30, 2017 8:22:35 AM
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For homeowners in every price bracket and throughout all 50 states, there’s one thing that is always at the back of your mind: building equity. We all want to maximize our ownership in a home, as quickly and easily as possible. After all, the greater your equity, the better your position for selling or refinancing the home. So what is the best approach for increasing your home’s equity?


After purchasing a prebuilt home, it typically takes about five years for a homeowner to earn enough equity to even think about selling or, in most cases, refinancing. Before that time, he or she would sell at a loss because he or she wouldn’t have enough equity.


A custom home offers a unique opportunity to build “move-in equity.” That means that you can have instant equity in your new home, even if you don’t put any money down on your mortgage loan. To give you an idea of how much move-in equity you might be able to achieve, last year, Adair Homes customers experienced an average of 26 percent equity in their home by the time they moved in.


How is that possible? We’ve devised an innovative project management system that lets our customers manage certain tasks throughout the custom homebuilding process. This gives them the opportunity to save significant amounts of money and create immediate equity.

The DIY Route

There is a wide variety of DIY projects that you can take on to increase your new custom home’s equity. Of course, the specific steps for your home site will depend on the project needs and the features of the land itself. For example, if your land is heavily wooded, a key site-development task will be clearing the site.


Managing site-development tasks doesn’t necessarily mean you are actually doing all the work yourself. You may be skilled at certain DIY projects but still need to coordinate with local contractors for other larger-scale items, such as installing a septic system. However, in these cases, simply serving as the point person for your various contractors gives you the opportunity to save money and create equity by handling the management yourself.

Common DIY Tasks

Here are some examples of DIY tasks that many of our homeowners have handled or managed themselves:


Before Construction Begins

  • Lay down a temporary gravel driveway to accommodate construction traffic.
  • Obtain and pay for permits and jurisdiction approvals.
  • Provide temporary power and water to the site.
  • Excavate the building pad.
  • Provide a portable toilet for the construction crew.

During Construction

  • Install a rain drain system.
  • Make connections to permanent utilities.
  • Backfill soil around the foundation.
  • Install a septic system.

As Construction Ends

  • Prime and paint the interior and exterior of the home.
  • Install exterior steps and sidewalks and a driveway.
  • Build a deck.
  • Clean up external construction debris.
  • Clean up and detail the interior of the home.
  • Grade and landscape the exterior.

Worth the Effort

If you’re building your first custom home, don’t worry: You don’t need construction experience to successfully manage your home’s site-development projects. Your builder team will help guide you through the process, from determining what site-development tasks are required to obtaining permits to finding high-quality contractors.


Although this approach does require some work on your part, our customers always find that these types of DIY projects are well worth the effort. For those tasks that are outside of your skill set, your builder can provide recommendations for trusted contractors in your area. And by the end of the process, you could build as much as 26 percent equity, like other Adair Homes customers, before you even make your first mortgage payment.


Are you excited to learn more about the Adair Homes custom homebuilding process? View our Path to Home Ownership guide.

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