There are a few things that are certain in life: death, taxes and, for many homeowners, remodeling projects. Whether the need arises due to an impending sale or because something needs fixing, these home improvements can add value and enjoyment to your house.
However, not all home improvements are created equal. Some can actually detract from your resale value, and even lead to costly repairs down the road. That’s why it’s important to know which projects are worth the investment and which are a waste of time and money.
In the past two years, Americans have spent a total of $522 billion on home improvement projects, according to the American Housing Survey. The average homeowner completed 115 projects during that time frame. Some of the most popular upgrades include sparkling bathroom overhauls, kitchen renovations and basement finishing.
Most homeowners paid for their projects with cash from savings, though the survey found that high-dollar projects were often financed through credit cards, loans from friends or family, contractor arranged financing and other sources. Despite the recent boom in home renovations, JCHS is forecasting that revenue will begin declining in 2023.
While there are many benefits to home improvements, it’s essential to balance cost recovery with your overall happiness as a homeowner. For the best return, it’s often wise to stick with projects that can easily be updated in the future. If you’re unsure about which projects to choose, consider discussing your options with a real estate agent to get their expert advice.