Home improvement, also called house renovation or remodeling, is a type of non-commercial construction activity that improves the interior or exterior of a building. The improvement is usually done to increase the value of the property, make it more functional, or better suit it to its intended purpose. It is commonly performed by contractors, but it can also be done by the homeowner as a DIY project. The most common types of home improvements include adding rooms or spaces, updating fixtures and appliances, installing new flooring or paint, and replacing windows and doors. Other popular house improvements include upgrading electrical systems, enhancing security, and making energy-saving upgrades.
The home improvement industry is a large and diversified sector of the economy. In the United States, there are more than 25 million active residential contractors who specialize in some aspect of home renovation. These contractors range from small, one-person operations to larger companies that employ a number of workers and subcontractors. Homeowners typically perform some form of home improvement on a regular basis in order to maintain the quality of their homes and increase their resale value.
As the housing market continues to struggle, many homeowners are choosing to renovate rather than sell. In fact, more than half of all home improvement projects are aimed at improving the overall value of the residence. Some of the most popular projects include upgrading kitchens, bathrooms and bedrooms. Home additions are also an excellent way to add value and living space to a home.
Some home improvements are considered capital improvements, which add to the cost basis of the property when it is eventually sold and may qualify for a tax deduction. However, it is important for homeowners to think about how the specific projects they undertake will impact their lives and the resale value of the property before investing in them.
It’s easy to get caught up in the excitement of remodeling and end up overspending. If you choose expensive floors, cabinets and other fixtures without a firm budget in mind, you could end up paying thousands of dollars for something that doesn’t necessarily add value to your home. In addition, going into debt to finance home improvements can be a bad idea for several reasons.
Before embarking on a home improvement project, homeowners should take the time to walk around their neighborhoods and see what others have done with their properties. This will give them an idea of the types of updates that will be most appealing to potential buyers. It is also a good idea to discuss the proposed remodel with a real estate professional to determine what resale value can be expected for the property. In addition, homeowners should talk with their home insurance agent to ensure that the policy covers any changes to the property. If there is a lapse in coverage, it is often possible to obtain an affordable extension for the period of time that the renovations are taking place.