Home improvement or home renovation is the process of remodeling, renovating or making additions to one’s home. It can include anything from changing the color of a room to installing a new roof. Some people may renovate their homes with the intention of increasing the value of their property, while others may be looking to make their house more livable for themselves and their family. Regardless of the reason for your house renovation, it is important to choose the right projects for the best return on investment.
The home improvement industry has seen some exceptional growth results in recent years, especially during the COVID-19 pandemic. This sector includes the retail sale of building materials, appliances and decor to the general public as well as contractors and other workers who help make improvements or repairs.
According to the United States Census Bureau, there are about 35.6 million homeowners in the country as of 2017. These people may be looking to improve their living space with a home renovation project. However, there are some things that should be avoided for the best return on your investment.
Avoid Going into Debt
One of the biggest mistakes homeowners make when doing home improvements is taking out a loan. This is a huge mistake because it means you’ll have to pay back thousands of dollars, plus interest. It’s much better to save up money or get a cash advance to do your home improvement project. This way, you’ll be able to enjoy your new space without worrying about paying it off later.
Avoid Over Improving Your Home
Many homeowners are tempted to improve their home by installing expensive floors, cabinets or countertops. However, it’s important to keep in mind that you won’t always get your money’s worth when it comes time to sell. According to a Cost vs. Value report from Zonda Media, the most popular home improvements don’t usually provide a high ROI. This is because buyers are usually looking for similar upgrades in their own neighborhood.
Another thing to keep in mind is that over-improving your home can deter potential buyers. It’s also a good idea to stay within your neighborhood’s average when it comes to home renovations. If you have a luxury backyard fountain and hot tub when the other houses in your area are pretty modest, it will stand out—and not in a good way.
It’s also important to complete your home renovation projects in a timely manner. If you drag your feet, it will take longer to finish your project and you’ll end up spending more than if you had started sooner. Also, make sure you hire a licensed and insured contractor. This will protect you in the event that someone is injured on your property or if there are any damages.
Lastly, remember that the most important reasons to do any type of house renovation are for your own comfort and enjoyment as well as to fix issues such as electrical problems or roof leaks. If you decide to improve your home with the goal of selling it down the road, you should consider working with a real estate professional for advice on what projects will have the most impact on your home’s value.