Home improvement, also known as home renovation or remodeling, is the process of altering the structure and features of a residential building. These projects may include anything from changing an existing fixture to expanding or modifying the whole house. The alterations can be done for aesthetic reasons, or to increase the value and utility of the property.
Many homeowners undertake home improvement projects to make their homes more comfortable and attractive. This can include adding or removing rooms, installing new lighting, appliances, carpeting and paint. Some improvements add functionality, such as upgrading heating and cooling systems, adding a handicap accessible bathroom or making kitchen upgrades. Other enhancements can increase the resale value of a property, such as creating an outdoor living space or adding an extra bathroom.
Remodeling your home can be a big project that requires hiring contractors and obtaining the necessary permits. It’s important to prioritize home improvements that will add the most value. Updated kitchens and bathrooms are always a safe bet, as are additions that increase the amount of usable living space, such as a finished basement or deck. Keep in mind that buyer preferences vary from one market to the next, so it’s important to consider local trends when choosing home improvement projects.
The best way to finance a home improvement depends on your situation. If you have a high credit score and a lot of equity in your home, a HELOC or home equity loan may be the best option. Those with less equity might prefer to use a personal loan or credit cards, which generally offer lower interest rates than home loans.
While it’s tempting to take on a large-scale home improvement project, you should try to stick to the most cost-effective upgrades that will yield the greatest return on investment. For example, if you live in a neighborhood with modest-priced homes, putting in a luxury pool or fountain won’t likely increase your home’s resale value.
Experts say home improvement projects that are expected to grow in popularity in 2023 include energy-saving updates. Those that improve a home’s insulation, ventilation and air conditioning will be especially appealing to buyers because they can save money on utility bills in the long run.