Home improvement is a multibillion-dollar industry that encompasses the sales of building materials, appliances, decor, and services provided by contractors and tradespeople to renovate or improve homes. Home renovations include both interior and exterior improvements, as well as structural upgrades, such as a new roof or deck. Home improvement projects can increase a property’s value, but they are also important for ensuring that household systems remain in good working order and to prevent damage or safety issues that could otherwise be costly or dangerous.
Many homeowners undertake home improvement projects to save money or to improve their living conditions, but it is important to choose the right projects and to have a realistic view of how much return on investment (ROI) can be expected. Projects that add value and are likely to appeal to buyers include updated kitchens and bathrooms, energy-efficient upgrades, and smart home technologies. Other low-cost but high-ROI upgrades include adding a fresh coat of paint, fixing dingy doors, and replacing drafty windows.
Homeowners should also focus on making improvements that are consistent with the character of their neighborhood, and avoid wildly out-of-character additions or renovations that will detract from the home’s value. It is also a good idea to pay cash for home improvements whenever possible, because going into debt can be very expensive. If this is not feasible, credit cards, personal loans, or home equity lines of credit can be used to finance projects without putting the homeowner’s home at risk.