Home Improvement and Resale Value

Home improvement

Home improvement can be a great way to make your home feel more like your own and to increase its value. But it’s important to keep in mind that not all home improvement projects add value to your home, and some can even decrease its resale value.

Home improvements include any addition or upgrade made to a property. This can be anything from replacing a door or window to installing a patio cover, pool, or deck. It can also be more major projects such as renovating the kitchen or bathroom, adding a bedroom or bathroom, or making a room more functional.

The most common reason homeowners undertake home improvement projects is to improve their homes’ function and comfort. Having more living space or a new bathroom can increase a family’s ability to live comfortably in the home, and may increase its resale value if done right.

Other reasons homeowners renovate their homes may be to address problems that need fixing such as electrical issues, roof leaks or a cracked foundation. These are home improvement projects that should not be put off and will likely need to be completed in order to ensure the safety and security of a family living in the home.

Increasing a home’s energy efficiency can also be considered a home improvement. Adding new windows, a heat pump or additional insulation can save on utility bills and often pay for themselves over time. These types of projects can be good investments that will help a homeowner recoup some of the cost when it comes time to sell.

There are also some home improvement projects that will not add much value to a home, such as highly personalized upgrades that go beyond the taste of the average buyer or those that don’t match the style and value of other homes in the neighborhood. For example, an in-ground swimming pool won’t appeal to a wide range of buyers and can lower a home’s resale value.

For most projects, it’s wise to stick with midrange options that will provide the best return on investment. High-end upgrades can detract from a home’s resale price, and it is difficult to recoup the initial cost on luxury fixtures and finishes. It’s also a good idea to consider how a project will look in ten years or more, as styles change over time. This is known as stylistic depreciation, and can result in a project that looks trendy now but could date quickly. This is especially true for kitchens and bathrooms. If a homeowner opts for a style that will be out of fashion in the future, it can reduce a home’s resale or rental value. Taking the time to research popular home improvement projects and choosing a style that will be appealing in a few years can help ensure the most return on a renovation.