Another manner in which a homeowner may see a rise in their property value is when they make home improvements. The addition of luxury features and security systems as well as landscaping can raise the value of the property, further increasing the equity.

Finally, homeowners build equity into their home with each and every mortgage payment they make. This occurs at an almost infinitesimal rate with most mortgage loans during the first payments because more money is going towards interest than principle. Gradually, however; the balance on the loan begins to decrease and provided nothing occurs to devalue the property, the homeowner begins to build up equity into the property.