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Real Estate Glossary

What is Sweat Equity?

Sweat equity refers to the value that is added to a property as a result of the owner's own labor and effort. Sweat equity can include things like making repairs, improvements, or renovations to a property, or even doing yard work or landscaping. This can increase the value of a property and often, it is used to purchase a property by reducing the amount of cash that is needed for down payment. Sweat equity is often used by first-time homebuyers who may not have the financial resources to make a large down payment, but are willing to put in the work to improve the property.

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