Home improvement is any home renovation or remodeling project that improves a house’s interior or exterior. It also includes work on landscaping and other external property improvements. Some people choose to make home improvements for personal enjoyment while others do it to increase the resale value of their homes. Home improvement can be a very time-consuming and expensive process. Therefore, it is important for homeowners to plan projects carefully and understand the risks involved before they begin work.
In 2021, American homeowners spent about $624 billion on home improvement and repair projects, an amount that doubled in just two years. These projects were motivated by a variety of factors, from pandemic-related social distancing and lockdowns to a desire to feel more satisfied with their homes. But the truth is, many projects don’t add any significant value to the homes and most do not recoup their costs.
While there are many benefits to improving your home, it’s important to consider how it might impact the resale value of your home when planning a remodel or renovation. Home improvements that are overly personalized or don’t fit with the style of the neighborhood may not add value, and could even detract from the sales price when it comes time to sell your home.
When planning your home improvement, it’s a good idea to create a budget before starting any work. This will help you avoid spending more than you have and keep your project on track. Homeowners should also be wary of taking on debt for home improvement projects. Not only does it cost more in the long run, but it can be difficult to pay off debt when interest rates rise.
It’s also a good idea to get multiple estimates before choosing a contractor for a home improvement project. This will ensure that you are getting the best possible price for the work that is being done. Homeowners should also ask contractors for a written contract before starting any work on a project. This should include a timeline for completion, payment schedule and a detailed list of all the work that will be performed. The contract should also contain any warranties for materials or workmanship and details of any other matters upon which the parties have lawfully agreed.
Finally, it’s a good idea to talk with a real estate professional before completing any home improvements that will have an impact on the resale value of your property. They can help you determine the best projects to complete and what improvements will add the most value to your home. They can also give you insight into current market conditions and trends that will affect the potential resale value of your home. It is also a good idea to talk with a financial advisor before undertaking any major home improvement projects. They can help you calculate the costs of your project and help you decide if financing is the right option for you.