Home improvement, in the simplest of terms, means making repairs and renovating your house to make it more comfortable. However, it can also include adding outdoor living spaces or upgrading the kitchen to fit your modern lifestyle. The key to home improvement is selecting projects that will add value to your home in the future.
While many homeowners splurge on new appliances and gadgets, some choose to spend money on smaller improvements that are more likely to increase a property’s resale value. These upgrades often provide the best return on investment because they are more likely to attract a buyer and are less expensive than larger renovations.
Some homeowners even take out a home equity line of credit to help pay for their remodeling projects, although it’s possible to spruce up your house without going into debt. If you’re ready to start a home improvement project, check with your mortgage company to see what loan options may be available. Then, look for a local contractor who has experience in the type of remodel you want to undertake.
If you’re doing a major home improvement, consider having an energy auditor inspect your house prior to beginning the project. This can give you an idea of what types of energy efficiency upgrades will yield the highest returns on your investment, which you can then incorporate into your remodeling plans.
In addition, keep in mind that home improvement expenses are tax deductible. The cost of capital improvements is added to your home’s existing cost basis, while the cost of repairs is subtracted from the sales price when you sell your home.
Before you decide on any specific projects, consult with your real estate agent and ask what renovations are expected to add the most value to your home. This will help you determine which renovations are worthwhile and which might turn off potential buyers.
One of the biggest home improvement trends of 2023 is for homeowners to repair and renovate their existing homes instead of purchasing a new property, according to Houzz, an online home renovation marketplace. As housing prices continue to rise and mortgage rates remain at historic highs, more Americans are staying put and sprucing up their current properties. While the elevated costs of building materials are a deterrent, experts say that many projects will still appeal to consumers, including those aimed at improving energy efficiency. Other popular updates include replacing outdated fixtures and tackling small cosmetic repairs.