Home improvement is any activity undertaken to improve the condition of a residential property. This includes repairs, maintenance, remodeling and adding onto a residential building. It also includes installing insulation, painting, landscaping and constructing fences or walls around a yard. However, it excludes the construction of nonpermanent recreational facilities and driveways, walkways, patios, boundary walls not necessary for the structural stability of a building, swimming pools and nonpermanent structures.
The good news is that the majority of homeowners intend to undertake some sort of home improvement projects in the future, according to a recent survey from NerdWallet. In fact, nearly all (95%) plan to do so in the next two years.
The reasons homeowners want to do home improvements range from making their homes more comfortable to increasing their resale value. More than half of those surveyed say they are looking to improve their homes so they feel better about living there, while others want to make their houses more appealing to prospective buyers. Those who are thinking about selling their homes in the near future should be especially careful when planning home improvements. Generally, it’s very difficult to recover the cost of most home improvements.
What’s more, many homeowners tend to underestimate the actual costs of their projects. This can lead to budget overruns that may not only increase the amount of money spent, but also impact the quality of the work done. When deciding on a project, homeowners should consult a contractor and review previous job histories and references to get an idea of how much the project will likely cost.
It’s also a good idea to talk to real estate professionals when deciding on which improvements will add the most value. This will help homeowners avoid spending money on upgrades that may not appeal to the largest number of potential buyers. For example, adding a pool to a neighborhood where all the other properties have above-ground pools could make yours look out of place. In addition, energy-efficient upgrades like new windows and a heat pump can increase your property’s value while saving you money on utility bills.
Ultimately, the decision to spend money on home improvements should be based on personal preferences and family needs rather than an attempt to maximize resale value. However, that doesn’t mean that resale value isn’t important. Taking the time to carefully choose and execute home improvement projects that will have a high resale value can make all the difference when it comes to selling your home in the future.
One final thing to consider before undertaking any major home improvement project is the state of the housing market. If fewer people are moving and the housing market continues to cool, it will probably slow the pace of home improvement projects as well. The decline in sales will impact the construction industry as a whole, including home improvement retailers and suppliers. In turn, this will likely cause the prices of materials to increase, so homeowners should expect their project costs to go up as well.
