Home improvement refers to the process of renovating or making additions to one’s home. This may include a variety of projects, including installing appliances and lighting fixtures, painting, or making structural changes such as adding an extension or loft conversion. Often, homeowners undertake these projects to improve their property’s value or suitability for sale, but some improvements are done for personal comfort and convenience. Some home improvement projects can also reduce energy costs and increase efficiency.
According to the 2022 LightStream Remodeling Impact Report, 83% of homeowners are planning some kind of home improvement project. This despite the fact that the COVID-19 pandemic had stopped many people from carrying out renovations. Most homeowners who are considering home improvement projects say they are doing so to make their homes more comfortable, rather than in order to attract prospective buyers.
Despite this, the largest home improvement retailers are reporting that their sales have slipped, with shoppers pulling back on larger, more expensive projects in favor of cheaper do-it-yourself fixes. Lowe’s reported this week that its sales had declined by 5%, while Home Depot reported a 3.5% drop in comparable home improvement sales last quarter.
It is important that homeowners do their homework before hiring a contractor for home improvement projects. This includes checking references and ensuring that the contractor is licensed and insured. It is also a good idea for homeowners to get a contract written up by the contractor that includes a timeline for work to be completed, as well as a payment schedule. The contract should also specify all materials to be used, including the type and brand name.
In some cases, homeowners can claim tax credits for certain home improvements. For example, if you install solar panels or insulation, these are considered capital improvements and can be deducted from your taxes at the time of selling your home. However, it’s a good idea to talk to your real estate agent before undertaking any major home improvement projects that will affect the overall value of your property. It is important to ensure that any potential improvements will have a positive impact on the market in your area, and that they are in line with other properties on your street or block.
In general, the best way to add value to your home is through kitchen and bathroom remodeling projects. These types of upgrades typically have the highest return on investment, and they can also significantly increase your home’s resale value. However, it’s also important to keep in mind that some home improvements don’t add value at all and may actually decrease your home’s resale price. For instance, adding an outdoor pool to your home is probably not going to be a great idea in most areas, as it will likely turn off most potential buyers. Instead, focus on more affordable home improvements that will give you a better return on your investment. These include things like painting, updating light fixtures, and upgrading your landscaping.