Home Improvement Can Increase Or Decrease a Home’s Value
Home improvement, also known as home renovation or remodeling, is the process of improving one’s home through a variety of projects. Projects can include a number of things, such as painting, plumbing, roofing and flooring as well as installing a new kitchen, bathroom or bedroom. The improvements may be a result of need or simply desire to upgrade an existing room, add a new feature to the home or make the property more energy efficient or safer.
Home improvements have been a longtime hobby for many Americans. The concept began to gain popularity after World War II, when large builders and mortgage insurance programs encouraged home ownership and construction of new homes. After the war, returning veterans were especially enthusiastic about making their own homes more comfortable and modern. Home improvements have also been fueled by the popularity of television shows such as Fixer Upper and This Old House.
There are many reasons for wanting to renovate a home, but some changes can have a negative impact on the resale value of a home. For example, a recording studio in the basement may appeal to music lovers, but would most likely turn off young families. Likewise, installing a home sauna or solar pool can be expensive projects that don’t necessarily pay off in the long run.
Generally speaking, most home improvements will increase a house’s value, but there are some exceptions. Adding an in-house theater is one of those projects that can have a negative effect on resale, says Bob Vila. Similarly, any project that is over-personalized to a homeowner’s taste can decrease the value of a home.
Some of the most popular home improvements are:
Adding a garage, shed or other storage space is always a good idea as it allows for extra space to store personal belongings and tools. Another common project is adding an additional bedroom as this will provide more living space for a growing family. Lastly, upgrading and replacing appliances, faucets and fixtures is a simple way to make a big difference in the appearance of a kitchen or bath.
When doing any home improvements, it’s important to have a budget and a plan in place. It’s also a good idea to talk to a real estate agent and/or contractor about the improvements before starting any major projects. Additionally, it’s a smart idea to update your home insurance policy once your renovation is complete as your previous policy may not provide enough coverage for the newly updated property. Finally, never go into debt to finance a home improvement project. Putting yourself in this position can have serious consequences and should be avoided at all costs. Instead, consider saving up for the work or hiring a professional to do the project. This way you can avoid paying a lot of money in interest charges and you’ll have the added benefit of owning your home outright.