Home improvement is an ongoing process of maintaining, repairing and improving the interior and exterior of a residence. These improvements are often done to increase the home’s utility and attractiveness, or to prepare it for sale. Homeowners can choose to do many of these projects themselves, a practice known as diy (do-it-yourself) home improvement, or hire professionals.
Regardless of whether a homeowner is updating a single room or the entire house, it is important to make smart choices about what renovations will add value and recoup costs when it comes time to sell. In addition, it is critical to understand how to protect the homeowner from unqualified or unreliable contractors.
Even with the best of intentions, homeowners can end up making ill-advised upgrades that do not improve their homes’ value or function. These can also cost them more in the long run through higher interest payments and the potential need to re-do the project. For these reasons, homeowners are encouraged to carefully consider all options for financing home improvement projects before beginning any work. Personal loans, credit cards and home equity lines of credit are a few of the available options, with each having its own advantages depending on the scope of the project and the level of equity in the home.
The best way to improve a home’s value is to keep up with routine maintenance and necessary repairs. This can prevent major problems down the road and deterioration of the property, which is a common source of lost value in homes. It is also a good idea to have a professional inspection of a property before starting any major renovations or making any decisions about selling it. This can uncover hidden issues such as a leaking roof or termite infestation that could be very expensive to fix later.
In general, it is important to remember that the value of a home is determined by its location and similar neighborhood properties. If a homeowner improves their home well above the average for the area, it may not be able to attract buyers and can actually detract from the value. For this reason, it is best to stick with home improvements that will appeal to the majority of buyers and are in line with the current style of the neighborhood.
Some of the most popular home improvements include sparkling bathroom overhauls, kitchen renovations and finishing basements. While these projects can make a huge difference in a home’s look and feel, they are not always an effective investment for recouping the initial cost. It is estimated that only about 60 percent of the initial costs for these major renovations are recouped upon sale.
