What Is Home Improvement and How Does It Affect Resale Value?
Home improvement refers to any renovation, remodeling or repair that makes a home more pleasant or functional. This includes adding or improving rooms and buildings, such as kitchens and baths; adding windows or doors; installing flooring or paint; altering the exterior of a home or building; modifying the electrical, plumbing or heating systems, and other structural improvements.
The home improvement industry has had excellent growth results in recent years. This was partly due to the COVID-19 pandemic that saw homeowners focus on DIY projects to improve their homes, and also because many consumers have money set aside for such work.
Many homeowners renovate to make their homes more comfortable or attractive. This is often done without concern for how the work might affect resale value, but it’s important to understand that not all improvements will increase a home’s resale price or even pay for themselves.
Return on investment (ROI) can vary widely and is dependent on the type of project, materials used, and labor costs. However, some improvements do produce high ROI values, such as replacing old, worn doorknobs with new ones; refinishing wood floors; or making energy-saving improvements like adding insulation or installing new windows.
In addition to considering ROI, homeowners should consider how long they plan on living in their home before deciding on major projects. Some home improvements may be a waste of money, such as adding a sun room that only you will use or installing unique lighting that won’t appeal to future buyers.