Home improvement is a popular way for homeowners to make their houses more comfortable and appealing. This industry includes the sale of building materials, appliances and decor, as well as the services provided by contractors, tradespeople and others who help with projects around the house. It has seen impressive growth results in recent years, especially during the COVID-19 pandemic, with many consumers focusing on DIY projects at home.
Some of the hottest trends in home improvement include upgrades that improve energy efficiency, which is particularly attractive at a time when utility bills are rising. Additionally, improvements that increase the amount of living space can be very attractive to potential buyers, as families may be looking for more square footage to accommodate a growing family.
Other popular home improvements include refreshing shower areas, replacing vanities and toilets, laying new flooring, adding fixtures and lighting, and constructing decks or fences. These projects are typically relatively affordable, but can have a high return on investment when it comes to increasing the value of the home.
However, it’s important to keep in mind that not all home improvements will add value to the property. It is important to research the type of project you’re considering and to consider whether it will be a long-term investment for you. Some renovations, such as a kitchen or basement remodel, will only add value to the property for a limited amount of time, while other renovations, such as installing a new air conditioning system, will have a much longer impact.
It’s also essential to plan your home improvement projects carefully and stick to a budget. It is easy for a renovation to wind up costing more than you originally anticipated, especially when you’re dealing with unexpected issues like a leaking roof or rotten subfloor. A budget will help you avoid overspending and prevent the need to take out a loan to pay for the work.
According to the NerdWallet September 2021 survey, 80% of homeowners say they typically stick to their budget for home improvements. In addition, the average homeowner spends just under $6,500 on a home improvement project, with most of this going toward kitchen and bathroom remodels.
In terms of resale, homeowners can expect to receive about 70% of their initial home improvement investment back when it comes time to sell their house. However, this percentage can vary greatly depending on the type of renovation and the area in which the house is located.
When planning for a home improvement project, it’s a good idea to talk to a real estate agent about the types of renovations that will add the most value to a property. A real estate agent can provide information about market conditions, including current interest rates, and can help homeowners find the right projects for their homes. Homeowners should also be sure to hire a licensed contractor for any major renovation project and obtain the proper permits when necessary. In addition, a contract should be drawn up for any work that exceeds $500. It is important that a contract contains an agreed upon timeline, payment schedule and as many specifics as possible about the project.