Nicole and Larry have decided to perform the landscaping of their new home by themselves.They also plan to take a do-it-yourself class at a local home store so they can replace the tile in the master bathroom without using a contractor.The effect of performing these tasks themselves will result in an increase in their:

Question

Quizplus · Accepted Answer

Performing landscaping and home improvement tasks themselves, such as replacing tile, increases the value of their home through their own labor, which is referred to as "sweat equity." This does not directly affect their principal, contingencies, escrow account, or result in a buy-down.

Nicole and Larry Have Decided to Perform the Landscaping of Their