Home improvement is the repair, maintenance, restoration, or improvement of residential real property such as a dwelling, its outbuildings and fixtures, or the land it’s on. Improvements may be cosmetic or structural, and are generally intended to add value to the property. Home improvements often involve installing appliances, painting, refinishing, carpeting, resurfacing, siding, landscaping and other such activities.
Almost all homeowners have undertaken home improvement projects at one point or another, and many are planning additional projects in the future. The average homeowner spent $7,746 on home improvements in the last two years. However, a majority of those surveyed say they weren’t able to pay for all of their projects without having to cut back on other expenses or go into debt.
Many homeowners are taking advantage of rock-bottom interest rates to do renovations they wouldn’t have considered during the pandemic. In addition, the number of people hiring landscapers, putting up fences, and constructing decks are all surging this year. However, experts warn that the housing market isn’t out of the woods yet. A potential recession and inflation could curtail spending on home improvements in the near future.
The most common reason homeowners upgrade their homes is to make them more comfortable. Others are motivated by the desire to increase their home’s resale value or to create more storage space. But before you start making major changes, consider what will really add value to your home.
A well-maintained lawn and a few shrubs and trees can add a nice curb appeal to your home. They aren’t expensive to maintain, either, and they can add a great deal of beauty. The same goes for a fresh coat of paint. A new front door is also a relatively inexpensive improvement that can instantly boost your home’s curb appeal.
It’s important to note, however, that most improvements don’t add a lot of resale value to the home. In fact, only about 20 percent of home improvement projects recoup their costs.
If you’re considering improving your home for resale, it’s a good idea to talk to a real estate agent first. They can give you advice about the best upgrades for your home and what will actually bring in a higher price at the closing table. It’s also a good idea to avoid overdoing it. If you improve your home more than the comparable homes in the neighborhood, it will stand out in a negative way when it comes time to sell. And remember that paying for home improvements with credit cards or loans is never a good idea. Rather, save up and do the work with cash. That will ensure you don’t get ripped off and end up with a house that you don’t truly own. Also, if you’re going to spend money on improvements, try to stick to the ones that will have the most impact on your home’s livability and comfort. If you’re renovating purely for resale, those are the most likely to pay off in terms of a higher sale price.