When looking at a pre-owned car, the service history can help you decide whether to buy it or keep hunting for a vehicle that you know will be reliable. A digital home file is a lot like a vehicle’s service logbook, potentially increasing resale value by showing that you’ve been diligent and transparent in caring for your property.
Use our step-by-step process to create a digital archive containing everything from purchase documents and maintenance records to renovation receipts.
Step 1: Choose an Organization and Storage Solution
First things first, choose an organization and storage solution for your digital home file. It’s a good idea to choose a cloud-based platform, as you’ll want the file to be easily accessible to your real estate agent and prospective buyers. The solution you choose should also suit your organizational style.
Consider using a basic cloud storage solution with a familiar folder system, such as Google Drive, OneDrive, or Dropbox, or a notetaking and file management app like Evernote. For real estate-specific needs, Paperless Pipeline or another platform with version logs and deal tracking features may be more suitable.
Step 2: Gather Essential Documents and Records
Before you can start creating a digital home file, you need to make sure you have all the relevant documents and records.
If you’ve been storing all home-related documents in a folder, drawer, or filing cabinet, this step will be relatively easy. If not, it’s time to start hunting. Make sure you have:
- Purchase and sale documents, including the deed, title insurance, and closing statement.
- Inspection and certificate reports for your HVAC system, the roof, the electrical system, as well as any warranties.
- Mortgage and property tax records.
- Permit and renovation documentation.
- HOA records, insurance policies, and utility bills.
- Neighborhood guidelines and HOA covenants.
- Appliance and system manuals and warranties.
You may be able to download digital copies of some of these documents and records, which can make this step easier.
Step 3: Scan Your Documents
Working chronologically, make digital copies of the invoices, manuals, receipts, certificates, and other documents you gathered by scanning them. If you don’t have a scanner, download a scanning app for your smartphone.
Ensure you thoroughly document all your home maintenance and remodels. At the same time, create a dated note or spreadsheet listing all the completed maintenance and remodeling work, including timestamps, costs, and contractor names.
Save the scanned documents in logically named folders in your chosen storage platform, making sure that you have a consistent way of naming the documents.
For example, if you had your roof repaired, save the invoice as “YYYY-MM-DD – Roof Repair – Roofing Company Name – Invoice.pdf.” Store your tax and household insurance-related documents in a folder named “Tax and Insurance.”
You don’t need to get this all done at once. If you have several drawers or binders filled with documents related to your home, try to get one drawer or binder done per day or over a weekend. Unless you’re planning to sell your home in a few weeks or months, there’s no rush.
Include Photos in Your Digital Home File
Make your digital home file more comprehensive by including photos and videos. You can either store this media in a dedicated media folder in your preferred storage platform, or you can embed them within your digital documents.
If possible, include before and after photos of repairs, renovations, and successful DIY projects, serial numbers of appliances and systems such as HVAC and solar power systems, and a walk-through video highlighting the general condition of your home.
Step 4: Include ROI Insights into Home Improvements
Your digital home file should provide real estate agents and prospective buyers with ROI insights into the home improvements you’ve conducted. Create a document listing the major improvements you’ve made as well as their approximate cost.
Compare these improvements and costs with the latest regional data, which you can find online. This is a helpful way of demonstrating the value you’ve added to your home.
Step 5: Ensure Your File is Backed Up and Secure
You’re going to put a lot of work into your digital home file, and you’re going to be sharing it. So, you’ll want to back it up and ensure that it’s secure and viewable only by those who have your permission.
Backup your file by using an external drive or by mirroring it between two different cloud platforms.
To secure it, enable two-factor authentication and set permissions. While you might not need to set permissions initially, you will need to do this when you share the file with a real estate agent or prospective buyers.
Step 6: Update and Use Your File Regularly
Once your digital home file is set up, make sure you update and use it regularly. Add documents related to any service calls or minor repairs you have done and update the file after each warranty renewal or annual inspection. Run an audit of the file and back it up once every three months.
You can use your file in various ways long before you think about selling your home. The file can make submitting tax records and insurance claims, as well as warranty management, easier.
Step 7: Get Your File Sale-Ready
Some of the documents in your digital home file don’t need to be seen by real estate agents or prospective buyers.
When planning to sell, create a clean, buyer-facing version of the file. To do this, remove personal items that aren’t relevant as well as private tax return documents before exporting the folders to a single share link. Alternatively, generate a PDF portfolio.
Whichever option you choose, make it easy for viewers to review your digital home file by including a summary sheet listing the contents of the various folders.
For a more polished and accessible presentation, consider creating a simple website using an AI-powered website builder. These tools have reduced the time it takes to create a simple site and can help you showcase your home’s key documents, upgrades, and history in a clean, professional layout that’s perfect for sharing with agents or serious buyers.
Boost Your Property Value with a Digital Home File
Whether you’re considering selling your house in a few months or a few years, a digital home file is a powerful tool.
Your file proves to real estate agents and future buyers that you are a conscientious, diligent, and trustworthy homeowner. This can potentially boost the value of your home and make the sale process faster, smoother, and more transparent.
