Home improvement is the process by which a homeowner renovates, repairs, or improves the value of a property. The most common home improvement projects include remodeling and repairs to kitchens, bathrooms, basements, or bedrooms, as well as painting, carpeting, or installing new flooring. Generally speaking, most homeowners undertake these projects in order to enhance the appearance of their home and increase its overall value.
With the elevated price of building materials, many homeowners may have rethought their home renovation plans. But even higher costs aren’t stopping Americans from investing in their houses. In fact, last year 24.5 million homeowners completed home improvement projects. That included a wide range of improvements from upgrading kitchen appliances to adding an in-home movie theater.
But not all home improvement projects are created equal. In fact, some renovations can actually decrease a home’s resale value. The key is to ensure that any projects you choose are a good fit for your home and that they will appeal to a broad spectrum of potential buyers.
It’s also important to remember that the return on investment you receive from home improvements is largely linked to your neighborhood’s overall housing market. So if you are thinking of making major upgrades, it’s best to consult with a local real estate agent first. They can help you assess whether these changes are the right fit for your house and will have a positive impact on your home’s resale value.
The definition of home improvement varies slightly from state to state, but in general it refers to any kind of repair, replacement, remodeling, alteration, conversion, modernization, or improvement of an existing residential dwelling or structure. In addition, this term can also be used to describe the repairing or replacing of windows, doors, roofs, porches, garages, and fallout shelters.
The good news is that, according to Angi, a contractor search and house renovation website, most home improvement projects will add at least some value to your home. However, some projects will add a lot more than others. For example, a swimming pool might add up to 7% to your home’s value but you might only recoup 80% of the cost of installing it. Other less expensive projects, such as updating the kitchen or bathroom, are more likely to increase your home’s resale appeal and will get you a high return on your investment. You should also keep in mind that your home insurance policy may need to be updated after you complete a significant renovation project. This could cause a hike in your premiums, or, in some cases, you might not be covered at all. Make sure to discuss these changes with your home insurance provider before completing any major renovations.