Home improvement is a multibillion-dollar industry that includes the sale of building materials, appliances, furnishings and decor, as well as contractors and workers who help homeowners renovate or enhance their homes. It experienced a boom during the COVID-19 pandemic, but its growth has since cooled. Consumers are deferring bigger renovation projects as they watch prices rise, according to data from Lowe’s and Home Depot. But they’re still spending on lower-cost improvements, such as replacing a shower curtain or painting the living room.
A home improvement project can be a smart way to increase your property value, but it’s important to know what projects will add the most value before you start. A poorly executed remodel can actually decrease your property value, so it’s crucial to choose wisely. Here are a few common home improvement mistakes to avoid:
There are many ways to pay for a home improvement project, but some of the most popular methods include personal savings, unsecured loans and secured loans like mortgages or home equity lines of credit (HELOCs). If you’re not sure how much your renovations will cost, consider using an online calculator. Then, you can plan out your budget and make an informed decision about whether to go ahead with the work.
In the past, many people opted to borrow money for home improvement projects through traditional loans from banks or lending institutions. Now, however, more and more consumers are turning to personal loans or home equity lines of credit to fund renovations. In addition to these options, there are also government-backed loans for home improvement available from Fannie Mae and the FHA.
Home improvements can be expensive, but you may be able to save on the cost by choosing smart projects that will yield a high return on investment. For example, adding a master suite is an excellent way to boost your property’s resale value. But if you’re not planning to sell anytime soon, a more modest upgrade such as a new front door could also provide an attractive return on your investment.
If you’re unsure of what projects will give you the best bang for your buck, talk to a real estate agent about your ideas. They’ll be able to offer advice and recommend some low-cost improvements that will add the most value to your home.
Although the home improvement industry has reached outstanding growth results in recent years, it’s important to remember that rising inflation and the potential for a recession will likely play a role in how much homeowners decide to spend on improvements in the future. So it’s important to be realistic about what your projects will cost and how long you expect them to take. It’s also a good idea to establish a budget and stick to it, even if you encounter some unexpected expenses along the way. This will keep you from overspending and putting yourself in financial danger. And it will help ensure that your home improvement project is a success.