Home improvement is a great way to add value and improve your home’s function. However, it’s important to choose renovations that fit your lifestyle and are consistent with the style of your neighborhood. You should also be aware of the return on investment for various projects so you can budget accordingly. To help you make the best choices, we’ve put together this guide with tips on popular home improvement projects, the costs involved and smart choices that can help you save.
When it comes to remodeling your home, it’s easy to get carried away with ideas and possibilities. This can lead to overspending and putting yourself in debt. To avoid this, make sure to research contractors carefully before hiring them. You should always check their license, insurance and business references. If possible, look for companies that have been vetted by a professional association or by a service aggregator.
According to the National Association of Realtors, a spike in home renovations during the pandemic was fueled by homeowners wishing to upgrade worn-out surfaces, finishes and materials, increase their home’s livability, add features and functionality, or just refresh the interior design. However, the NAR report cited that 83% of surveyed homeowners planned to renovate their homes regardless of the pandemic.
While home improvements are generally made for aesthetic reasons, a number of homeowners also do them to increase their home’s value before selling it. In some cases, this may be because they need more space for themselves or their family. In other cases, it’s because they want to sell the home and make a profit. Whatever the reason, it’s important to plan your home renovation projects with resale in mind.
It’s also important to keep in mind that some home improvements will only increase your home’s resale value marginally. Moreover, it’s not always possible to recoup the money you spend on certain projects. For instance, if you decide to replace your home’s windows, you can expect to get only about a 20% return on your investment.
Lastly, it’s important to consider the impact that your home’s renovation will have on your local property market. This is because buyers will indirectly compare your house to those in the area when evaluating its value and price. You should only invest in projects that will be attractive to potential buyers.
For example, replacing an old and outdated kitchen with a new one will boost your home’s appeal and appeal to potential buyers. This is because buyers will be able to easily identify the upgrades you’ve made, which will give them an idea of the overall condition of the home. In addition, energy-efficient home renovations like new windows and insulation will help buyers save on their utility bills. These improvements will make your home more appealing to buyers and will boost its resale value.