Home improvement is one of the biggest investments a homeowner can make. That’s why it’s important to do your research before you pick up a hammer or start swinging the drill. Whether you’re renovating an old kitchen or adding on to your home, there are certain renovations that will increase your property value and others that might not.
The first step in any renovation is determining your budget. If you’re not careful, you can easily overspend on a project and end up going into debt. A good way to avoid this is to work with a trusted contractor and come up with a contract that includes a payment schedule, a description of all materials and services included in the project and any other items you want to be covered. Also, it’s a good idea to include a “change order” in your contract that gives you the right to modify your original plans if needed.
While it’s important to choose materials that will last, you also need to factor in the cost of labor and other expenses. Many contractors will try to upsell you on upgrades or higher-end materials, but those extra costs can add up quickly.
It’s also important to remember that some projects will actually decrease your house’s resale value, so be sure to consider these factors before you break out the drywall. Some of the most popular home improvements are painting rooms and updating light fixtures, but it’s important to stick with midrange options that will still provide a high-end look.
Many homeowners developed a renewed interest in home renovation projects during the COVID-19 pandemic. But it’s now time to reassess their plans, as the nation’s two largest home improvement retailers have reported a cooling of spending by households.
According to the 2023 Remodeling Impact Report by NAR, home improvement projects are being halted in part because of rising mortgage rates, softening housing prices and economic uncertainty. Nevertheless, the vast majority of surveyed homeowners plan to renovate their homes.
Generally, the best home improvements are those that will improve a home’s function and safety, while also appealing to prospective buyers. A popular and relatively inexpensive upgrade is replacing or upgrading kitchen cabinets and appliances. Likewise, adding an additional bathroom is a great way to boost resale value.
If you’re looking to upgrade your living space, a master suite is another common and lucrative home improvement. But, it’s important to talk with a real estate agent before you start breaking out the hammers. They can advise you on what changes will most likely appeal to the widest range of potential buyers and maximize your return on investment.
Whether you’re a Fixer Upper or This Old House fan, there are plenty of ways to improve your home and make it a place you love to live. Just be sure to take the time to do your research and choose a project that fits within your budget and will give you the most return on your investment.