Home improvement is a broad term that encompasses anything you do to your home or property that adds value or functionality. These can be small DIY projects or major renovations that cost thousands of dollars. Many homeowners take on these projects to get a better return when they sell, but others renovate solely for their own enjoyment. Regardless of why you choose to improve your home, there are several things you should know before starting any project.
The first thing to keep in mind is that not all home improvements increase your resale value. In fact, some may even hurt it. The key is to decide what is most important for you and your family. Then, focus on renovations that will provide that for you while avoiding those that won’t.
For example, if you want to turn your basement into a rec room or add a master suite, you should know that these additions won’t make you much money if you ever decide to sell your home. On the other hand, a sparkling bathroom overhaul or new appliances can boost your resale value significantly.
One of the biggest factors when it comes to resale value is location. You should also consider the home improvement trends in your area. For example, if most people in your neighborhood are adding swimming pools to their backyards, you might want to skip the pool installation.
If you aren’t sure what renovations will add value to your home, talk to a local real estate agent. They can give you advice about which renovations will pay off when it comes time to sell, and which ones will be a waste of money.
Another consideration is how you will finance the home improvement project. According to the American Housing Survey, cash from savings accounts covers most of the costs of minor renovations, while more expensive projects are paid for by cash-out refinancing, home equity loans, contractor arranged financing, credit cards and “something else.”
Finally, remember that it’s important to work with legitimate contractors. You should always check a company’s license and insurance coverage before hiring them to work on your home. You should also ask for references and check online reviews to ensure that you’re working with a trustworthy company. And don’t forget to communicate any safety concerns with any home improvement professionals you hire during the pandemic. For example, you should make sure that you tell them about any mask-wearing and cleaning measures you need to take to protect yourself from the coronavirus. This way, you can avoid any unnecessary stress or extra expenses.