Here at Unison, we partner with you to give you more flexibility when purchasing a home or unlocking your home equity. In return, we share a portion of the future change in the home’s value.
In other words, we are investing alongside you in your home, and like you, we want the home to increase in value.
But what happens if you invest in home improvements? Does Unison share the added value?
This is one of the most common questions we get. The short answer is: No, it would not be fair for us to share the value from your own investment — you retain the value of your home improvements.
Keep reading to understand how our process works.
Our Goal is a Fair Allocation of Value
Our goal, as always, is to make the process as fair as possible. When you partner with Unison, you always have the freedom to improve your home however you like. Want to remodel the kitchen or add another bedroom? That’s fine with us. But you do have to make records of your investment.
So what do you have to do?
- Make sure you save all your receipts
- Take “before” and “after” photos to document the changes
- Submit these to Unison as soon as possible after work is completed
When you provide evidence of the remodel, it means we can account for your investment whenever the home is sold or when you buy us out. Your documentation should include all receipts for work completed on the home as well as clear and comprehensive “before” and “after” photos to demonstrate the upgrades that were made.
As long as we have the necessary evidence of your remodel, we will rely on an independent appraiser to determine how much value was added to the home and allocate it to you when the home is sold or when you buy us out.
A Reminder About the Value of Home Improvements
Please remember that the value of home improvements is not always equal to the amount you spend on them. We can only give you credit for actual value added to the home, as determined by an independent third-party appraisal.
For example, if you own a home in Seattle and install an in-ground swimming pool in the backyard, you may not add much value to the home — even if you spend tens of thousands of dollars on the project. On the other hand, if you were to add a third or fourth bedroom to the home, this would probably add value to the home.
Ultimately, the value added by your home improvements will depend on the market — not on how much you invest.
The chart below shows an example transaction in which the homeowner spent $40,000 on a kitchen remodel. The appraisal determined that this home improvement added $25,000 to the value of the home. The amount of $25,000 was credited to the homeowner.
Do you have questions about making home improvements while partnering with Unison? Share your comment below and we’ll reply as soon as we can.
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