Home Improvement Projects and Your Home’s Value

Home improvement is a big industry, and it has been growing steadily over the past decade. Homeowners of all ages are spending money on improvements in the hopes that it will make their property more attractive to buyers should they decide to sell. The most common project homeowners are tackling is remodeling their kitchen or bathroom. Others are hiring a professional to spruce up their electrical wiring or cabinets.

According to a survey by Home Renovation, these projects are more likely to add value to your home than adding a swimming pool or installing a gazebo in your backyard. However, it is important to keep in mind that not all home improvement projects will add value to your property. Some projects might even decrease your house’s resale value. This is particularly true for any expensive or highly customized upgrades that aren’t likely to appeal to potential buyers.

For example, a fancy gourmet kitchen might be a dream addition for you, but it isn’t likely to appeal to many people who might be interested in buying your home. Similarly, an in-ground swimming pool can be a major turnoff for some buyers who are worried about safety or the cost of maintenance.

The good news is that there are some projects that will increase your home’s resale value, and some that you can do yourself. For example, replacing worn doorknobs or fixing a broken window are inexpensive fixes that could easily boost your home’s curb appeal. Another great DIY project is repainting your front door or trimming your overgrown bushes.

If you do choose to hire a contractor for your home improvement project, make sure that the contract is signed by both you and the contractor with his name, address, and MHIC license number preprinted on it. This helps to protect you from unlicensed contractors and also ensures that any disputed work will be covered by your home warranty.

Homeowners are spending more time at home during the pandemic, which has given rise to a surge in certain home improvement projects, such as building decks or putting up fences. According to NerdWallet, millennials are more likely than other homeowners to take on these projects.

While rock-bottom interest rates have made home improvement projects more attractive, it is important to weigh the benefits of a project against its potential impact on your resale value. It’s also wise to consult with a real estate agent or financial planner before starting any work.

If you are looking for a lender to finance your next home improvement project, check out the best personal loan companies. They can help you find the right personal loan for your unique situation. Alternatively, a cash-out refinance or home equity loan might be a better fit for you, depending on your credit score and how much equity you have built up in your property. However, always speak with a financial advisor before choosing a mortgage option. This will ensure that the loan is right for your budget and financial goals.