Home improvement is an investment in the comfort of your family, and in the avoidance of costly repair bills. In addition, homeowners that invest in their homes often raise neighborhood standards and thereby boost property values. While it is possible to do a few basic jobs, such as painting and installing light fixtures, unless you are skilled in wiring, plumbing and cutting through walls, you should leave major projects like adding rooms or remodeling bathrooms to professionals.
When it comes to choosing a contractor, there are many factors to consider, including license, insurance, business references and reputation. Homeowners should do some research, and ask friends and neighbors for recommendations. Consumers can also use aggregator services, which bundle offers from service providers and act as an intermediary agent between homeowners and contractors.
Many homeowners are planning to take on some type of home improvement project in the next two years. While the majority are interested in completing minor projects, such as painting or upgrading lighting, about 40% of those surveyed are considering a major upgrade such as remodeling their kitchen or renovating a bathroom.
A few months ago, we reported that home improvement spending was slowing down after a pandemic-era renovation craze. And this week, the nation’s two largest home improvement retailers, Lowe’s and Home Depot, announced that they are seeing a decrease in sales of large appliances and other larger-ticket items. Nonetheless, homeowners remain committed to investing in their homes, and there are several reasons why.
In fact, our survey finds that a key driver for home improvement is making a house more comfortable. While many people may want to make their home a more enjoyable place for their families, the second most common reason that people work on home improvement projects is preparing their homes for sale, with 29% of homeowners saying they are taking on improvements in order to sell their homes.
If you’re considering working on home improvement projects in order to prepare your home for sale, it is important to weigh the pros and cons carefully. While some upgrades will significantly increase your home’s value, others may not pay off at all or may even detract from the overall value of your home.
The types of projects that tend to add the most value are those that can be enjoyed by a wide range of potential buyers, such as updated kitchens and bathrooms or a finished basement. In contrast, a custom pool or hot tub will only appeal to a very small segment of the population and are unlikely to increase your home’s resale value.
It’s also important to consider how long you plan to stay in your home when making decisions about your home improvement projects. If you are planning on selling your home within a few years, it’s usually better to save up money and only do projects that will add long-term value. Otherwise, you might end up overspending or going into debt, which could affect your ability to qualify for a mortgage when you’re ready to sell.