By Definition:
An interest or increased value in a property earned from labor.
Sweat equity is the unpaid labor cash-strapped homeowners put into a project
With sweat equity, the down payment comes from the value of the labor and cost of the materials needed to make improvements to the home you’re buying, rather than from any actual asset account.
Together, families pour foundations, frame homes, install electrical wiring, hang doors and windows and even lay tile and paint. These labor hours, or “sweat equity”, are used as the down payment on their new home, reducing costs for a new home they could otherwise not afford.
Typical examples of Crockett new construction “sweat equity”:
The most popular example of sweat equity we see across all types of Crockett Homes is painting and staining. Homeowners typically save $8,000 by painting or staining their interior walls and ceiling and in log homes applying the exterior wood preservative. The time commitment is two weeks.
Relatives and close friends who are willing to do the electrical, plumbing or heating work for the cost of materials is a huge savings. HVAC technicians must be licensed in the state of Pennsylvania.
Are you handy in woodworking? $2,000 can be saved by doing your own trim work.
When you sit down with us to discuss your home building project, share with us if you are interested in adding sweat equity to your home. These price savings are approximate and vary by the size of the home.