Home Improvement – A Great Way to Increase Your Home’s Value
Home improvement can be expensive and a big undertaking, but it’s one that can pay off in the long run. As homeowners invest in their homes, it adds to the value of their property and can make for a nice return on investment when they decide to sell. The home renovation industry saw a huge boom during the pandemic, and while spending is expected to decrease in 2024, many homeowners are still interested in making upgrades to their houses.
Home improvements are any alteration, repair, addition, modification or improvement of a building or other structure or the land on which it sits, including but not limited to driveways, sidewalks, swimming pools, unattached structures such as garages or sheds, paint or coatings, interior and exterior paint and siding, and appliances. Home improvement also includes installation, replacement or repair of chimneys, fireplaces, air conditioning or heating systems, kitchens and bathrooms, windows and doors, roofs and porches, fences and landscaping.
According to a survey from Home Depot and Houzz, homeowners have been investing in their homes over the past few years. In fact, the study found that homeowners’ median renovation budget jumped 20% from 2020 to 2021. Homeowners have seen the benefits of home renovation projects and want to keep renovating their homes.
Among those who have taken on home improvement projects, 69% of respondents say they were able to afford the majority without tapping into their savings or going into debt. Despite the financial benefits, some homeowners are worried about over-renovating their homes and potentially harming their property value.
Some home improvement projects can be delayed, but others are necessary to prevent major problems that could be costly and dangerous. Electrical issues or leaky roofs, for example, are things that should be addressed as soon as possible to keep you and your family safe. Other projects can improve the overall functionality of your home, such as updating an outdated kitchen or installing a new security system.
When it comes to deciding on home improvement projects, it’s important to choose ones that will provide the best return on investment. You should also consider how long you plan on staying in your home and look at comparable properties on the market to determine what improvements are worth it.
Adding a master suite with its own bathroom and walk-in closet can significantly increase the value of your house. However, you should talk to a real estate professional to determine if it’s worth the investment.
While it’s tempting to take on big home improvement projects that will increase the value of your house, you should also be sure to update your homeowners insurance. As your house value goes up, your old policy may no longer offer sufficient coverage. When you’re ready to sell, you’ll want to ensure that your homeowners insurance is up to date as well. Talk to your local home insurance agent about a comprehensive homeowners policy today.