Home improvement is the process of making changes to a house or property to make it more comfortable, safe and attractive. These can include adding a new room or space, upgrading the home’s energy efficiency, and enhancing its curb appeal.
Building equity
The most common way for homeowners to build their home equity is through making improvements to their homes. These can range from small, low-cost improvements to expensive, major renovations. While these projects are not always guaranteed to increase the value of a home, they can significantly increase a homeowner’s overall equity.
It’s best to focus on the most important upgrades that will add the most value and help you recoup your investment when it comes time to sell your home. Here are some tips to keep in mind when deciding on which home improvement projects will give you the most bang for your buck:
Upgrades That Are More Likely to Recoup Your Investment
If you’re considering making a major upgrade, choose ones that will help you appreciate your space more than others. For example, installing a new kitchen or bathroom may not pay for itself in the long run, but if you love your new space, you’ll likely enjoy living there for years to come.
Updates that Improve Your Home’s Energy Efficiency
If your home has outdated or inefficient heating, cooling, and lighting systems, you may want to consider making some updates to these areas. Having updated systems can reduce energy costs, which is especially helpful during times of high inflation and higher utility bills.
Increasing your home’s energy efficiency can also increase your home’s resale value when you are ready to sell. For instance, a new furnace or air conditioning system can add thousands of dollars to your home’s value.
A home’s resale value is affected by the home’s condition, location, and the neighborhood. For example, a house with a new kitchen and hardwood floors will have more resale value than a home with an old kitchen and outdated flooring.
Don’t try to improve your home’s resale worth by customizing it with expensive, personal items that will be difficult for potential buyers to replace when they move in. For instance, a custom home recording studio may not be appealing to young families, and an antique piano might not have the same appeal as a modern piano.
Relatively high-quality home upgrades can increase your resale value, but the quality of the upgrades may be more important than the value they add. For instance, marble countertops and floors in a bathroom can be lovely, but a homebuyer might not be willing to pay extra for them.
Do-It-Yourself home improvement ideas can make a big difference in your home’s value without spending a fortune. Painting, re-grouting tile, and power washing the outside of your home will all give you a fresher look for a reasonable price.
Whether you’re looking to improve your home’s value, comfort, or safety, you should be aware of the risks involved in home improvement work and be sure to do your research before hiring a contractor. Many people find it helpful to ask for referrals from friends and neighbors who have used contractors in the past. Then, it’s a good idea to perform some background checks on the contractor to ensure they are legitimate and insured.