Home improvement, also known as house renovation or home sprucing, is the process of improving one’s living space. This may be achieved by altering the structure of the building, installing new fixtures and furnishings, or repairing existing items. Regardless of the scope of the project, the goal is to enhance the property and increase its market value. While many homeowners pursue projects with a view to increasing their home’s value, not all add to the resale price of a property.
While sparkling bathroom overhauls and a state-of-the-art kitchen can give you the boost you want, other home improvements may not yield much return on investment when it comes time to sell your home. In fact, many of the popular home improvement projects homeowners undertake don’t even recoup their costs, according to the latest Cost vs. Value Report from the contractor search site Angi.
Whether you’re doing your own home improvement or hiring a professional, make sure to get quotes from multiple contractors. Prices can vary significantly, and quality of work is also a factor. Choose a contractor with a good reputation, experience, and solid track record. You can also use online reviews to find out what previous customers have said about the company.
In the US, the most common home improvement project is adding a bedroom or bathroom, followed by replacing windows and adding a deck. Aside from these larger-scale remodeling jobs, there are many smaller tasks that can be completed to improve the look of a house and to make it more energy efficient. For example, repainting your exterior can instantly brighten up the façade and make your house more appealing to potential buyers.
If you’re planning on selling your home soon, you should consider talking to a real estate agent to learn which projects are most likely to pay off in terms of added value. It’s also wise to avoid any projects that are overly personalized or do not fit the style and taste of your neighborhood, which can turn off prospective buyers.
Aside from maintenance and minor repairs, the most common home improvement projects are kitchen and bathroom remodels, garage and basement remodels, and a porch or deck addition. Depending on where you live, you may be eligible to receive help with these types of projects through government assistance programs. The best thing you can do to save money on a home improvement project is to pay cash, rather than taking out a loan. Not only does this reduce the risk of not being able to repay your loan, but it will also prevent you from accruing interest on the money you spend. Moreover, you’ll be more likely to stick with the project until it is completed if you don’t have to worry about making payments each month. You may even be able to claim tax deductions on the expenses you incur for your home improvement project. The exact rules differ by country, so you should consult your local CPA or the department of revenue for more information.