Home improvement is the activity of making changes to an existing home to improve it’s comfort, efficiency or appearance. The home improvement industry also encompasses the supply of building materials, furniture and appliances for these projects. The industry has reached excellent growth results in recent years, especially during the COVID-19 pandemic, and is one of the most important consumer sectors.
The ability of a home improvement project to add value to a house will depend on the type and extent of the renovation, as well as the local real estate market. A major kitchen remodel, for example, is likely to boost a home’s value more than simple paint jobs or new bathroom fixtures. In addition, structural improvements such as adding living space, finishing a basement or installing a deck are usually considered to be high-value improvements.
A common mistake homeowners make is to overspend on home improvements, which can actually detract from a property’s value. If you go too far above the norm for your neighborhood, potential buyers may be turned off by the sheer excess and will likely offer lower offers. It’s important to consult with a professional before undertaking any major renovations, such as hiring an architect or engineer to prepare construction plans. Moreover, it is crucial to establish a payment schedule and withhold final payments until all work is completed and inspections and certificates of occupancy are received.
For those who want to increase the resale value of their home without going into debt or ransacking their savings, there are still plenty of low cost and high impact home improvement projects they can do on their own. Whether it’s painting, re-grouting tile or power washing the house exterior, these do-it-yourself upgrades can have a significant impact on the resale value of your home.