Home improvement, also known as house renovation or home repair, is the process of upgrading and repairing a dwelling. These projects can be done on both residential and commercial properties. Home improvements can include anything from changing a doorknob to replacing a kitchen sink. Many homeowners consider this to be an investment as it can increase the resale value of a home or simply make it more livable. However, it is important to note that not all home improvements will increase the resale value of the property.
According to a survey conducted by NerdWallet, most homeowners are very good at budgeting for home repairs and improvements. The September 2019 survey found that three-fourths of homeowners say they are easily able to fund a major home improvement project without tapping into savings, going into debt or making other sacrifices. This is up from a similar NerdWallet survey in 2018.
While it may be tempting to renovate your house with an eye towards increasing resale value, some projects are not always worth the cost. It is important to choose carefully, settling on projects that are likely to appeal to the largest possible number of prospective buyers. It is also important to maintain the existing systems in your home; neglecting them can result in costly repairs down the road.
It is important to note that not all home improvements are considered capital improvements; this depends on the definition of a “capital improvement” in your state’s law. For instance, in some states, adding an above-ground pool can be considered a capital improvement while others may consider it an ordinary maintenance item. It is important to consult a CPA to determine whether or not your home improvement project qualifies.
Most homeowners who undertake a home improvement project do so to make their homes more comfortable for themselves or their families. Additions like extra bedrooms and bathrooms are popular for this reason, as well as improving curb appeal with new landscaping or a deck. It is also a good idea to make your home more energy-efficient with new windows and insulation, which will lower utility bills in the long run.
There are some projects that are so necessary, such as fixing a leaky roof or replacing an old furnace, that they can’t be postponed. These must-dos usually have the highest ROI, so they are an excellent place to start when it comes to home improvement.
When hiring someone to perform a home improvement, it is important to hire a licensed contractor. Checking licenses, insurance and business references should be a priority for any homeowner. There are a number of online resources that can be used to verify these credentials, as well as reputable professional associations and professional organizations that homeowners can use to find qualified contractors.