Home Improvement – What Is It and How Does It Affect Your Home Value?

Home improvement is the process of renovating a house to make it more pleasant and functional. Home improvements can be as simple as painting a room or adding an outdoor deck, or as complex as installing new windows, doors or a kitchen remodel. Homeowners can either do the work themselves or hire professionals to do it for them. Regardless of the scope of the project, it is important to consider the ROI (return on investment), which will determine whether the cost of the renovation will be recouped in the higher home value when the house is eventually sold.

There are some certainties in life: death, taxes and for homeowners, home repair and improvement projects. These projects may be in response to a leaky roof or a flooded basement, or they may be part of a planned upgrade. Either way, the projects are expensive and often disrupt daily activities.

The most popular home improvements include sparkling bathroom overhauls and kitchen renovations, but these projects do not always recoup their costs when it comes time to sell the house. A study from Contractor Growth Network shows that, on average, homeowners only recoup about 60% of the money spent on a major kitchen or bath remodel when they sell the house.

One of the best ways to improve a home’s appeal and increase its resale value is to make it more energy-efficient. The installation of new windows, a heat pump and added insulation are some examples of projects that will decrease energy costs and add to a home’s value.

It’s also a good idea to keep up with exterior maintenance, such as cleaning gutters and repairing damaged siding. A well-kept yard, with a few strategically placed shrubs or flowerbeds can also add to a home’s curb appeal.

The popularity of DIY home improvement TV shows, such as HGTV’s “Fixer Upper” and Bob Vila’s This Old House, has helped to expand the industry. In addition, the popularity of online tutorials has made it possible for homeowners to do many projects themselves.

When hiring a professional to perform a home improvement, the homeowner should get a written contract with a detailed schedule for when the work will be completed and a payment schedule. The contract should also specify virtually every detail of the project, including the type and brand of materials to be used.

The NerdWallet survey found that three-fourths of homeowners say they have money set aside for home improvements. However, nearly half of respondents reported not wanting to allow contractors into their homes during the coronavirus pandemic due to safety concerns. It is recommended that a home owner hire a contractor only after researching the company and reading reviews. This will help to ensure that the contractor is reputable and has experience performing similar home improvements. In addition, a home owner should check with local regulatory agencies to make sure the contractor is licensed and insured. Finally, the homeowner should always get multiple estimates before making a final decision.