Home improvement is a multi-billion dollar industry, and homeowners are always looking for ways to improve their property. In fact, the National Association of Realtors found that after completing one renovation project, 86% of consumers felt inspired to renovate other areas of their home. But not all projects are created equal, and some may actually cost more than they recoup in increased resale value.
While there is nothing wrong with upgrading your living space to fit your specific needs, it is important to keep in mind that not all home improvements add value. In fact, most do not even come close to covering their costs if you are planning on selling your house in the near future. For the most part, a remodel is done to enhance a house’s appearance and make it more functional for the homeowner. However, some projects have a greater return on investment than others, such as a sparkling bathroom overhaul, kitchen or basement renovation.
According to a recent report, homeowners have been spending more money on their homes in 2022 than they were during the first half of 2021. This increase is partially due to the construction boom in the aftermath of the housing market crash, but it also is a reflection of higher labor and materials costs for things like lumber, roofing materials and other home improvement products.
Regardless of the reason, most homeowners have a desire to improve their home and make it more comfortable for them and their families. This could be as simple as redoing a kitchen or bathroom, adding a patio to a yard or turning an extra bedroom into a home gym. The majority of people are not looking to sell their homes, but if they are, resale value is an important consideration.
Experts and contractors advise that before spending any money on upgrades, homeowners should consider how their property compares to similar homes in the neighborhood. They should also think about how their upgrades would appeal to the majority of potential buyers. For example, marble countertops might appeal to some, but might turn off other potential buyers who prefer a more affordable option. Also, some upgrades might be too expensive for the neighborhood, such as a luxury pool or a new backyard structure.
Another good reason to remodel is for energy efficiency. Adding new windows, a heat pump or additional insulation can decrease a home’s energy bills and pay for themselves over time.
While it is true that not all home improvements offer a return on investment, there are many ways to upgrade a home without going into debt or ransacking savings. Paint, re-grouting tile and power washing the exterior are all easy do it yourself projects that can make a big difference for little to no money. These types of low-cost projects can help a home look its best and, more importantly, improve a homeowner’s quality of life.