Home improvement is the process of making changes to improve or upgrade a home. These projects can be as simple as painting a room or as complex as adding a garage or kitchen remodel. Regardless of the size of the project, it’s important to carefully evaluate costs and financing options before beginning any work. A well-planned and executed renovation can boost a home’s resale value as well as its comfort level.
While the swine flu pandemic fueled home improvements, the trend has now peaked and is expected to decline this year. This is because many homeowners made upgrades for resale, not to make the home more livable during their tenure as owners.
The return on investment, or ROI, on home improvements varies widely from over 100 percent to a mere 20 percent. Some projects that have a high ROI include installing new floors, kitchen or bathroom remodeling and adding energy-efficient windows. Other projects, such as converting a garage into living space, are unlikely to increase resale value.
When choosing the right upgrades, it’s helpful to consult a real estate agent to see what projects would add the most value to your property. However, it’s also important to keep personal preferences in mind. Maybe the dated 1980s kitchen drives you crazy or that dirty carpet needs replacing, but these are just wants and not necessarily essentials. In such cases, it may be wiser to invest in a less expensive and more comfortable upgrade, like a new master suite or refinished basement.