Home Improvement – How to Save Money and Maximize Your Home’s Value
Home improvement is the repairing, remodeling, restoring, renovating, or altering of the interior or exterior of a residential building. It may also include adding rooms, changing electrical or plumbing fixtures, or putting on a new roof. This can be done either by the homeowner or by a professional contractor. Home improvement is an important part of maintaining a residence, and it can increase the value of a property.
Homeowners are still willing to spend money on home improvement projects, but they have put a halt to big-ticket projects like kitchen and bathroom renovations in favor of less costly upgrades. A recent survey by Lowe’s and Home Depot found that major home improvement spending has cooled in the wake of Covid-19-related lockdowns and higher prices for materials.
Many homeowners are reducing the scope of their renovations and opting to take on simpler tasks they can complete themselves, such as painting walls or installing new doorknobs and light switches. The categories experiencing the greatest growth in terms of project work over the past two years are those that involve outdoor projects such as deck construction and fence installation. The survey, conducted by the American Housing Survey every two years, found that the number of projects jumped from about 94 million in 2021 to more than 134.8 million this year.
It’s important to keep in mind that while some home improvements offer strong returns, others can actually decrease your home’s resale value. Choosing upgrades that appeal to a broad range of potential buyers will maximize the value of your investment. In general, avoid over-customizing your house; too much individuality will make it difficult for prospective buyers to see themselves living there.
If you’re planning on using a home equity loan to fund your next project, it’s important to remember that you will have a monthly mortgage payment in addition to the cost of the project itself. Before you start any work, it’s a good idea to talk with a financial advisor and compare loan offers.
A common mistake that homeowners make is taking on more than they can afford to pay back, or ignoring the impact of increased interest rates on their home equity loans and lines of credit. It’s also a good idea to plan carefully, and consider how long you want to stay in your current home before making any major changes. In a tight market, it may be a better idea to save up and try again when the economy improves. This is especially true for those who are thinking about selling their home in the near future. A home sale can be a complicated and lengthy process, and you don’t want to find yourself having to sell your house for less than you expected.