Home improvement, by definition, is any renovation, remodeling or upgrade to a residence. This can include painting, resurfacing or replacing floors, adding a deck or patio and installing a pool. In addition to increasing a home’s value, these projects also add to a homeowner’s quality of life and may provide tax benefits. Generally, the cost of renovating a home can be recouped during a sale or by leasing the property for increased rent payments. However, it is important to carefully plan out any home improvements before beginning the work and be aware that there are some projects that don’t yield high ROI values.
While whole house renovations might be a good way to increase your property’s resale value, there are plenty of small DIY home improvement projects that can do the same without putting you into debt or ransacking your savings. Paint, re-grouting tile, power washing and other simple projects are some of the most effective ways to improve your home’s value.
A home’s curb appeal is a critical factor in determining whether or not potential buyers will be interested. The most popular exterior home improvement projects include landscaping, deck construction and fence installation. In fact, the number of homeowners hiring landscapers has increased by more than threefold since March of this year. According to Anderson, this is because of the rock-bottom interest rates and the desire to make homes more comfortable.
Depending on the state, many home improvement projects are eligible for tax deductions and credits. For example, energy-efficient home improvements are often eligible for rebates and incentives, while other home improvement projects like a kitchen remodel might be able to qualify for depreciation deductions. However, it is important to consult a tax professional before making any changes to your home.
Before undertaking any large home improvement project, it’s a good idea to compare estimates from a few different contractors. In addition to price, consider a contractor’s reputation, experience and length of time in business. It’s also a good idea to get all contract terms and costs in writing, including what’s included and any potential hidden charges.
Another key consideration when making home improvements is to keep in mind that the renovations you choose should be consistent with the overall style of your home and the neighborhood. Too many contrasting styles can turn off potential buyers and even lower your home’s value.
Before completing any home improvement project, be sure to check with a local real estate agent for advice on what types of improvements are most attractive to potential buyers. Additionally, be sure to avoid any home improvements that are too personalized or go over the buyer’s budget. One big mistake that many homeowners make is improving their homes well above the average for neighboring houses, which can actually decrease their property’s resale value.