Home improvement can be a big undertaking. Whether you’re installing a new kitchen, adding a bathroom or doing some major remodeling, it can be expensive. However, it is important to choose the right projects and hire professionals to complete them. In addition to ensuring the work is completed properly, you want to make sure that any improvements will boost your home’s value. There are some projects that will yield a higher ROI than others, but it is also important to consider how the project will impact your lifestyle and if it is compatible with the surrounding neighborhood.
The Covid pandemic has led to more time spent at home, and many homeowners have been upgrading their living spaces. Some have cited rock-bottom interest rates, while others have been looking to refresh worn-out surfaces and add new features to their homes.
Despite the increased demand for services, homeowners are deferring rather than abandoning large-scale home improvement projects, according to research from Home Depot and Lowe’s. The reason: rising prices.
According to the Census Bureau, American homeowners spent $522 billion on home improvements during the past two years, taking on an estimated 115 million projects. That is a $72 billion increase over the previous two-year period, with each homeowner spending an average of $1,500 per project.
Aside from a few high-profile disasters, such as a leaky roof or a moldy basement, most projects were on schedule and within budget. Nevertheless, as prices have gone up, more homeowners are looking for lower-cost upgrades they can tackle themselves, such as refreshing shower areas or replacing vanities and toilets. In fact, the latest data from market intelligence firm Circana shows that sales revenue for these types of projects has actually risen, even though unit sales have dropped.
It’s no secret that some home improvements don’t offer a strong return on investment, but what may come as a surprise is just how much some renovations can decrease your house’s resale value. If you’re planning to sell your home in the future, it is essential to consider what renovations will boost your home’s curb appeal and resale value before you start knocking down walls or tearing out old fixtures.
In an era when the internet has become a staple of everyday life, there are numerous websites that provide information on everything from how to build a deck to how to paint your home. While some of these sites are reputable, there are many that are not, and they should be avoided. Homeowners are advised to perform thorough background checks and only use reputable aggregators that have membership in a reputable association and/or are accredited by a professional organization.
For those considering a house renovation, the Ramsey team suggests discussing your plans with an experienced real estate agent to ensure they’re worth the money and will appeal to a broad range of buyers. Below are some of the most popular house renovations and what they may cost on average.