Home improvement, also known as home renovation or remodeling, refers to a wide range of projects that upgrade the interior or exterior of your house. Home improvements are often made to enhance comfort and convenience, or to increase the value of your home. In some cases, the work can be done as a form of self-sufficiency or do-it-yourself (DIY) project.
The popularity of home improvement shows and the success of DIY stores like Home Depot have fueled Americans’ obsession with upgrading their houses. According to the American Housing Survey (AHS), homeowners spent $522 billion on home improvements in 2021, a record high that reflects a rebound from a low point following the COVID-19 pandemic lockdown.
A homeowner’s goal should be to improve their home without going into debt. To do that, they should only invest in upgrades that will add to their home’s resale value. Generally, the best returns on home improvement projects are for sparkling bathrooms and kitchen remodels, as well as garage conversions that add living space.
If you want to make a larger investment, talk with a real estate professional about what might appeal to prospective buyers. It’s important to choose projects that are not overly personalized and stay within the style of your neighborhood. Adding a hot tub or a fountain in a suburban backyard may not appeal to most potential buyers, so you may not recoup your costs when you go to sell.
It’s also a good idea to use contractors with a track record of reliability and to get all promises in writing. The contract should include the name and contact information for the arbitration provider; a description of the arbitration procedure, including any mandatory fees; and a disclosure that claims against the contractor’s guaranty fund will be stayed until the arbitration process is complete.