Home Improvement – A Great Way to Increase Your Home’s Value When it’s Time to Sell
Home improvement refers to any alteration, repair, replacement or improvement of any part of a dwelling house, including but not limited to kitchens, bathrooms, garages, basements, fences, roofs, windows and doors. It may also include the construction, painting, coating or installation of driveways, sidewalks, swimming pools, patios, decks and any other structure or affixed to land that is adjacent to a dwelling house.
During the past two years, homeowners did home improvement projects at a record pace, spending an average of $7,746, according to the 2021 American Housing Survey. The number of projects grew 17%, and the amount spent climbed 21%.
The biggest surges in home improvement were in the areas of backyard work, such as building decks and putting up fences. These projects were driven largely by rock-bottom interest rates, which made spending on a home seem like a comfortable investment.
However, even these types of projects aren’t guaranteed to increase a home’s value when it’s time to sell. Generally, these renovations will only pay off when they match or exceed the neighborhood’s standard.
For this reason, it’s important to talk with a real estate professional before you commit to any major home improvement projects. This will help you choose renovations that are suited to your neighborhood and will likely appeal to the broadest range of potential buyers. It’s also a good idea to budget wisely, paying cash for any improvements as opposed to going into debt. This will help you avoid future headaches down the road if you decide to sell your home.