Home improvement, also known as renovation or remodeling, is the process of enhancing a dwelling to improve its comfort, functionality and appearance. Home improvements may be cosmetic or structural in nature. Regardless of the scope, home improvement is often a lengthy and costly project, but it can increase a home’s value when done correctly.
Many homeowners renovate for the sole purpose of increasing their property’s resale value. Unfortunately, the majority of these renovations don’t deliver a significant return on investment. While sparkling bathroom overhauls and big-ticket kitchen renovations are among the most popular upgrades, homeowners typically only recoup about 60 percent of their costs when they sell, according to a Cost vs. Value report by Zonda Media.
Renovating to enhance your family’s lifestyle is a good thing, but it’s important to choose wisely. Some projects have a greater return on investment than others, such as upgrading to energy-efficient appliances and installing new windows that will save money on energy bills over the long term.
Another key point to keep in mind is that you only own your home for as long as you’re living there, so don’t go into debt to make expensive upgrades. A home equity loan is a great option to help you pay for a home remodel, but you should still aim to save as much cash as possible before beginning a renovation project. Moreover, it’s best to avoid making improvements that outpace the average for your neighborhood.