Many people are looking to increase the value of their homes. Home improvement is a great way to do that. However, not all home improvements add value. Some actually decrease the resale value of a home. If you’re planning on selling your home in the near future, consider these types of improvements carefully before making them.
A home improvement is any work done to improve the function, appearance or safety of a house. This includes alterations to the plumbing, wiring or structural parts of a home as well as interior or exterior painting. Some of the most popular projects include installing new kitchen appliances, bathrooms, and floors. An addition or extension is another common home improvement that can increase a home’s value and living space.
While some homeowners do renovations to make their house more enjoyable, other improvements are designed with resale in mind. The key is to choose the projects that are most likely to appeal to potential buyers. A pool, for example, might not add much to a home’s value. But a basement remodel could. It’s also important to stay within your budget and not overspend. If you do, you might end up spending more on your home than it will eventually sell for.
According to the National Association of Realtors, home improvement spending increased in 2017 for the first time since 2010. Aging homeowners are responsible for much of this increase. People who are 55 and older were responsible for more than half of all home improvement spending in 2017.
One big reason is that they have the money to do it. This is mainly because the housing market has recovered and homeowners have equity in their homes. Another factor is that people are able to borrow more money to pay for the projects, thanks to low interest rates and higher home prices.
It’s important to know what home improvements are most worth it, both for your own enjoyment and for resale purposes. A good place to start is with the 2018 Cost vs. Value Report from Remodeling magazine. It provides national data about which upgrades offer the best return on investment. But you will also need to consider the specifics of your home and neighborhood when deciding which improvements are right for you.
The most valuable home improvements increase a house’s value in fair relation to the amount spent on them. Some improvements, such as a new kitchen or bathroom, will always be a smart investment. However, the type of upgrade you decide to make depends on your personal preferences, how long you plan to live in your home and the value of similar homes in your area.
When selecting contractors, get as much information as possible about each of them. Ask for a list of previous customers and contact information. Find out how the contractor performs in emergencies and whether they’re insured. It’s also a good idea to have a clear plan for the project and a budget before you begin work. This will help you avoid overspending or going into debt to finance the work.