Home improvement is a broad term for projects that improve your home, such as remodeling the kitchen, adding a deck or patio and updating the bathroom. These improvements add value to your home and make it a more enjoyable place to live. However, it’s important to keep in mind that you may not be living in your home forever – and the changes you make might impact how easily you can sell it. That’s why it’s important to choose upgrades that are in line with the style and value of your neighborhood, as well as to be smart about how much you spend on any renovations.
Fewer than half (42%) of homeowners who took on a project over the past two years say they were able to pay for most of it without having to tap into savings or go into debt. In fact, 20% of these homeowners had to make sacrifices such as cutting back on discretionary spending or selling items to pay for their projects. Meanwhile, 14% had to use an emergency fund, and 8% borrowed against the equity in their home.
The best home improvement projects are those that provide the most immediate return. That could mean fixing an electrical problem or replacing a worn-out floor, but it also might mean adding an extra bedroom, installing energy-efficient windows or building a backyard shed. If you’re planning on upgrading your home for resale, talk to a real estate professional about the best projects to take on and which might provide the most immediate benefit.