Home improvement is the process of renovating or making additions to your home. These improvements are typically completed to enhance the home’s functionality or appearance, and they can include renovation of interior spaces, or work done on a home’s exterior.
Home improvements can be a great way to make your house feel more like your own, and they can also add value to your property. However, it is important to consider the return on investment before starting any projects. Many home improvement projects do not recoup their full cost, and some actually decrease your home’s value.
Some examples of home improvement are painting, repairing broken floors or adding a deck. However, some projects are more significant and require the help of professionals. For example, installing new windows or a roof can be expensive and complicated, and it is not recommended to attempt these projects without professional assistance.
There are many different ways to finance your home improvement project. The most popular method is cash, which is used by 83 percent of homeowners according to the 2024 Remodeling Impact Report from Houzz and the National Association of Realtors (NAR). Other methods include using savings, credit cards or a secured loan, such as a home equity line of credit (HELOC).
It is important to choose your contractors carefully. It is recommended to get referrals from friends and family members, and then perform background checks on each contractor. It is also a good idea to compare prices and contract terms before choosing a contractor. A large ‘grey market’ of unlicensed contractors exists, so it is essential to hire a qualified and insured company.
The definition of home improvement varies, but generally includes any repair, remodeling or modernization that adds value to a residential building. It can also include a garden, fences and other nonpermanent structures on the property. However, it does not include adding on to a house or building a new structure.
A common misconception is that all home improvements increase a house’s value. However, this is not always the case. Some upgrades may be too high-end or extravagant for the area, and can detract from your home’s overall value. For example, marble countertops in a kitchen may not appeal to a wide range of buyers and can be very costly. Instead, focus on upgrades that will appeal to a broad audience. For instance, replacing outdated appliances with energy-efficient models can save money and improve your home’s value. Similarly, updating your flooring with laminate wood-look tiles is an affordable and easy DIY project that can drastically boost your home’s look. It is also important to keep in mind that the resale value of your home can be affected by the neighborhood’s competition. Be sure to keep your upgrades consistent with the surrounding homes in your area. For example, a swimming pool in an area with no public pools may not be appealing to potential buyers. This is why it is important to research local real estate trends before beginning any major renovations.