Home improvement, which encompasses any repairs or upgrades to the exterior or interior of a property, is a common homeowner’s project. A wide range of projects fall under this category, from new windows and a front porch to a remodeled kitchen or bathroom. In addition to boosting a home’s aesthetic appeal, many home improvements can increase its resale value and make it more attractive to potential buyers. But homeowners should carefully consider which renovations are worth the investment and which ones may actually cost them money.
The home improvement industry has boomed in recent years, partly due to a rebound in housing market and growing interest in remodeling among older homeowners, who are most likely to undertake major projects. According to Remodeling Magazine, the average home owner spends about $3,890 on renovations and remodeling each year. Despite the rising popularity of home improvement, some projects are better left alone. Some high-end upgrades, such as imported Italian marble flooring and unique light fixtures, can actually detract from a home’s resale value.
Some of the most popular home improvement projects include sparkling bathrooms, kitchen overhauls, and basement conversions. These can add a lot of value to your home, but the ROI on some more extreme projects, such as installing custom cabinets or granite countertops, is less than ideal. In fact, some home owners aren’t even getting their full investment back when it comes time to sell.
Before starting any home improvement, speak with a real estate agent in your area to learn what specific projects are most likely to pay off. In addition, it is a good idea to talk with your home insurance provider to see if the new renovations will impact your policy.
Home improvements are often a labor of love, and it can be tempting to spend a lot of money to give your home the perfect finish. However, some projects are more likely to detract from a home’s value than they are to add it. For example, a home recording studio may appeal to you, but young families might be turned off by the expense and the need to redesign the space for them.
Fortunately, there are many low-cost and easy DIY home improvement projects that can boost your home’s value. By tackling simple projects, such as painting and re-grouting tile, you can make your house more appealing to future homebuyers without going into debt or ransacking your savings. And remember to update your home insurance coverage as soon as you complete a renovation to ensure you have adequate protection.