Home improvement is a popular pastime for many homeowners. The television schedule is packed with shows such as Fixer Upper and This Old House, and countless DIY magazines are filled with ideas for remodeling or adding onto a house. But not all home improvement projects are created equal. Some actually decrease a home’s value rather than add to it. Read on to learn more about what kinds of projects a homeowner should avoid and how to make sure that any renovations are worth the money.
Home improvements are any upgrades done to the interior or exterior of a home. This includes anything from adding a new room to expanding the size of an existing one, and can also include fixing something broken, or even just repainting. Home improvements can be a great way to get your home in top condition for sale, and can increase its curb appeal as well.
The most common reason people embark on home improvement projects is to improve their living environment. A new kitchen or a master suite addition are examples of this type of upgrade. Other reasons can include a desire to save energy, or to make the house more attractive.
While some homeowners undertake home improvement projects for their own comfort and convenience, others do so with the intention of adding to the resale value of the property. In this case, a new kitchen or a master suite is more likely to yield a high ROI when it comes time to sell the house.
However, the higher the price tag associated with a particular project, the less it is likely to increase the resale value of the home. This is because most buyers will not be willing to pay a premium for a feature that they will not use themselves. For example, an in-home movie theater may be appealing to film buffs, but a young family looking for a home will not want to pay extra for a dedicated media room.
Similarly, expensive landscaping projects, luxury appliances and other upgrades may be off-putting to potential buyers. Instead, a homeowner should try to keep up with the neighborhood by choosing upgrades that are more affordable and will be of interest to a broad range of buyers. It is also important to remember that any changes to a home can impact the insurance rates. In this case, it is wise to speak with a qualified insurance professional before undertaking any big projects. A new roof, for instance, can cause a change in the homeowner’s insurance rates. If the premium increases, it may be necessary to seek out a different policy to cover the new value of the home. This is one of the few instances in which it makes sense to obtain a home appraisal before making significant home improvements. This will help ensure that the home owner is getting a fair rate for the insurance they are purchasing. This is especially important in today’s volatile economic climate, when the value of a home’s insurance can fluctuate significantly from one year to the next.