Sweat equity Term Meaning in Real Estate - Guide

Sweat equity refers to the efforts taken by homeowners to enhance their homes.

Kopal Cheema

7 years ago

Published Date: Apr 02, 2018

Updated Date: Mar 27, 2024

Sweat equity, in the context of real estate, refers to when homeowners enhance the value of their existing asset (home) by applying self-labor to make improvements. The more labor applied to the home, and the greater the resultant increase in value, the more sweat equity has been used.

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