Home Improvement Costs and Value

Many homeowners embark on home improvement projects with an ulterior motive: the hope that the work will add value to their property. They may have a specific remodeling project in mind, or they could just want to spruce up their kitchen, bathroom or other living space. But it’s important to understand that not all projects increase a house’s value, and some actually decrease it.

In general, improvements are considered home improvement if they cost more than $5,000 and are done in order to make the property more usable, functional or safe. They include adding or renovating a deck, patio, swimming pool, driveway, walkways, fences and landscaping. They also include painting, repairing, replacing or resurfacing sidewalks, driveways and sidewalks, fences and gates, water softeners and heating and air conditioning equipment. They don’t include repairs to the roof, foundation or basement or the construction of a building.

Often, homeowners take out loans to cover the costs of these home renovations. But it’s crucial to remember that going into debt to carry out home improvement projects is a bad idea for several reasons, including the fact that you’ll pay thousands of dollars in interest when you pay with credit cards or loans. In addition, it’s not good for your health to have so much stress in your life.

A better option is to save up for the remodeling project before starting it. In addition, homeowners should always check a contractor’s license and insurance before hiring them to work on their home. A good way to do this is by using an aggregator, which collects quotes from multiple service providers and provides the consumer with the best options available. It’s also a good idea to get estimates from more than one service provider, as prices can vary significantly.

The most valuable home improvement projects are those that will appeal to a wide range of buyers, such as energy-efficient appliances and new kitchen cabinets. Moreover, they should be cost-effective and fit well with the home’s architecture. Similarly, adding an extra bedroom or bathroom to a family home will likely be appreciated by a larger number of people than just the original owners.

The best home improvement projects are those that will give you the biggest return on investment, as indicated by Remodeling magazine’s 2018 Cost vs. Value report. Aside from adding value, these improvements will help you to live more comfortably in your home. In general, you can expect to get about a 70 percent return on your investment, but this figure varies by project type and location. For example, projects that boost curb appeal will likely result in a higher return than those that improve a home’s interior. It’s also worth mentioning that some renovations, such as installing an indoor pool, are unlikely to improve the value of your property at all, as they can turn off potential buyers. So, before you begin any work on your home, consult with a real estate professional to learn what types of projects will be most profitable.