Home improvement, the act of improving a home to increase its value and livability, is a popular pastime for many homeowners. In fact, the 2022 Remodeling Impact Report from the National Association of Home Builders (NAHB) revealed that Americans were spending more on upgrades than ever before. The coronavirus pandemic may have played a role in this spike, but the survey also found that it wasn’t the only reason for more renovations. Respondents also noted they were upgrading worn-out surfaces and materials, enhancing their homes to make them more enjoyable to live in, and adding features that would appeal to buyers.
While it’s important to invest in projects that will boost your home’s resale value, you shouldn’t go overboard. The highest-end upgrades aren’t always the best way to add value, and they may even deter prospective buyers who aren’t interested in paying top dollar for high-end finishes. Instead, choose mid-range projects that are appealing to a wide range of consumers.
One of the top ways to add value to a home is by installing energy-efficient appliances and systems. In addition to decreasing your utility bills, these upgrades can also reduce your home’s carbon footprint. Having your home’s exterior painted is another quick, inexpensive project that can add big-impact curb appeal. Whether it’s a fresh coat of paint or a power wash, this upgrade can help to give your home a facelift and improve its curbside appeal.
Depending on your needs and budget, you can complete these projects yourself or hire a professional. But before you make a final decision, take the time to research contractors and compare their qualifications. Look for a licensed, bonded and insured business with a good reputation. Choosing the right contractor can help to ensure your project is completed on time and on budget.
When it comes to home improvement, every dollar counts. So, how do you know which projects are worth the investment? To help you decide, we’ve compiled a list of the best and worst upgrades when it comes to resale value.
A new kitchen, master suite, outdoor living space or a fully renovated bathroom are some of the most common upgrades. But if you’re looking to maximize your return on these types of investments, choose projects that are both popular and timeless.
According to the NAHB, homeowners who are 55 and older were responsible for half of all home improvement market spending in 2017. While millennials were more likely to pursue home improvements than other generations, they still only accounted for 6 percent of total homeowner spending. However, it is expected that they will become the largest share of renovators in 2023 and beyond. This is due to higher housing prices allowing them to tap into home equity through mortgage refinancing and cash-out refinances, as well as their greater disposable incomes. In addition to savings, these homeowners often utilize credit cards and contractor arranged financing for their projects. Lastly, they may seek out grants and other government assistance.