Home improvement is the act of improving or repairing a house or other building. This includes the addition of new rooms, upgrading old ones, and the general maintenance of a property. Home improvements can be DIY projects or hired out to professionals. This industry is very lucrative as it contributes to the economic stability of nations and states by creating employment opportunities for contractors, plumbers, carpenters, etc. It also gives rise to income tax deductions for the homeowners.
According to the Home Improvement Industry Association (HIAA), this industry encompasses the sale of construction materials, appliances, decor items, and services offered by contractors and tradespeople. It has experienced excellent growth results in recent years. Its market size is estimated to be more than $60 billion, with the majority of revenues generated from renovation and remodeling projects.
Whether you’re planning to sell your home soon or are simply looking to update some of its features, it’s important to choose wisely when it comes to home improvements. Not all renovations add value, and some actually decrease resale value.
The home improvement industry is booming, thanks to the increasing number of people looking to make their homes more energy efficient, comfortable, and attractive. This sector is projected to continue growing in the near future. Some of the most popular home improvements include window replacement, siding installation, and garage door replacement. The HIAA reports that these particular projects provide an average of 69 percent return on investment.
Other home renovations that can increase resale value include adding a garden, installing solar panels, and replacing old windows and doors. It is important to keep in mind that renovations should be done according to the needs and tastes of prospective buyers. For example, a swimming pool may not be very appealing to young families, and the cost of maintaining it could offset any added value.
Moreover, some home renovations might detract from resale value if they are too personalized. According to famed home improvement expert Bob Vila, built-in electronics like a home recording studio might turn off some buyers. Similarly, custom-built kitchen cabinets and bathroom fixtures might not appeal to everyone.
It is also advisable to walk around the neighborhood and see what other people have done with their houses before embarking on any major renovations. It is helpful to know what upgrades are common in the area and how much your neighbors’ houses are worth.
Lastly, it is crucial to prioritize the most important home improvement projects first. It doesn’t make sense to spend money on a lavish landscaping project if your roof is about to collapse or your insulation is outdated. It is also a good idea to avoid expensive luxury renovations that are likely to put off potential buyers. For instance, you might be tempted to install marble floors in your bathroom but it is unlikely to appeal to a wide range of buyers.