Home improvement can improve your quality of life while adding value to your house. However, not all projects are created equal, and you should carefully consider the potential return on investment of any work you plan to do before beginning it. Also, if you’re planning on selling your house in the near future, you should stick to improvements that will appeal to a wide range of potential buyers.
Home remodeling is in the midst of a slowdown, after a pandemic-era frenzy to upgrade both newly purchased homes and those that were inhabited during Covid lockdowns. Households appear to be putting the brakes on their big kitchen and bathroom renovation plans in favor of cheaper DIY fixes. The nation’s two largest home improvement retailers have reported that they’re seeing homeowners hit pause on their tub-to-shower conversions and replacing shower curtains with patterned fabric instead.
Still, a majority of householders say they’re planning to make some home improvements in the next two years, according to NerdWallet’s latest survey. And a few projects are expected to have high ROIs, such as installing a smart thermostat or upgrading a kitchen.
Other upgrades can lower utility bills and add a fresh look to your home, without breaking the bank. For instance, a new front door with energy-efficient glass can improve your home’s safety and security while saving you money on heating and cooling costs, as can replacing old windows or adding insulation. And a simple coat of paint can make an entire room feel new, without costing more than $200, according to HomeAdvisor.
If you’re planning a more ambitious project, such as tearing down a wall or adding an outdoor living space, it’s important to hire licensed professionals for the job and to follow local building codes and regulations. Also, be sure to have a contract in place that spells out the scope of work and includes a payment schedule for progress. You should also insist that any contractor withhold final payment until the job is complete and all required inspections and certificates of occupancy have been obtained.
Aside from these more expensive projects, you’ll want to avoid focusing on aesthetic changes, such as adding a koi pond or water feature to your backyard, that won’t add much in terms of value to your home. Rather, stick to upgrades that will increase the home’s overall or functional living space.
While you’re improving your home, keep up with the maintenance tasks that can make a significant difference in the long run. Neglected roofs, termite infestation and outdated electrical systems can all cost a lot more to fix later on than they would if you handled them now.
While you’re completing home improvements, you should try to stay within your budget and only spend as much as you can afford to pay back with interest over the long haul. It’s also wise to save your cash in case you need to make a costly repair or deal with an unexpected event such as a natural disaster.