Home improvement is a wide range of activities that can be performed to improve the functionality, beauty or value of a home. It includes renovation, repair or replacement of existing structures, such as doors, windows, roofs, heating and air conditioning systems, plumbing, electrical and other fixtures, and the addition of new structures, such as driveways, sidewalks, decks and patios. Home improvement can also include the construction of fences, porches and garages. Home improvement can be performed by professionals, or by the homeowner as a do-it-yourself project.
As the coronavirus pandemic continues, some homeowners are upgrading their homes in an effort to make them more comfortable and appealing. The National Association of Realtors (NAR) reported that renovation spending hit a record high this year and is projected to continue to rise in 2022. However, rising mortgage rates and the possibility of a recession could influence how much work homeowners take on in the future.
The most popular home improvements are kitchen remodels, bathroom upgrades and additions, deck installations and yard projects such as fence building and landscaping. According to the NAR survey, these are some of the best investments that can be made to increase the overall value of a home. Other top improvements include installing energy-efficient appliances and replacing the home’s heating and cooling system.
Fewer than half of the homeowners who took on home improvement projects during the NAR’s 2021 survey said they were able to pay for the majority of their work without having to sell items, tap into savings or go into debt. About 14% of homeowners who completed projects during this time had to cut back on discretionary spending, and 12% had to borrow money.
It is important to keep in mind that not all home improvements are a good investment. Some projects may actually reduce the value of a home. For example, adding a pool to your backyard can be an expensive endeavor that does not add value. On the other hand, a well-planned kitchen remodel can add resale value and enhance your quality of life.
Those thinking about making major upgrades should speak with a real estate professional before investing in anything too costly. For example, it may not be wise to install a pool or fountain in your backyard if the homes in your neighborhood are modest. Also, a hot tub or outdoor fireplace might look out of place if your neighbors have modest-looking pools and sturdier fencing.
Home improvement can be a fun and rewarding experience when done properly. Choosing the right contractor, budgeting for the project and staying on track with payments are some of the key factors to successful home remodeling. If you’re considering a loan to help with your home improvement project, be sure to compare lenders and rates before selecting one. A reputable lender will have a mobile-optimized site, flexible terms and competitive APRs to meet your needs. Also, be sure to read the fine print and consider fees and penalties that could impact your repayment schedule.
