Home improvement is a big business—and it’s a very personal one. People renovate their homes for a variety of reasons: They want to live in a certain area, they’re tired of their kitchen or bathrooms, or they just need a little more space. Whatever the reason, if you’re considering making some changes to your house, it pays to know which projects add value and which ones aren’t worth the extra cash.
When choosing a project, think about how the upgrade will benefit your family and what kind of return you’ll get when it comes time to sell. Then, figure out how to pay for the renovations. Ideally, you’ll save money as you go, but if you need help, we offer a variety of financing options that can make it easier to do the home upgrades you want.
There are a few certainties in life: death, taxes and—if you’re a homeowner—home repair and improvement projects. In fact, homeowners spent $522 billion on these projects in 2019, according to the American Housing Survey (AHS).
A lot of this spending was on high-cost improvements that are more likely to boost a home’s marketability. These include kitchen and bathroom remodels, garage conversions, and adding a deck or fence to the backyard. These types of projects are a good way to improve the overall look of your home and often have a quick payback.
Increasingly, though, homeowners are choosing to skip these high-return projects and opt for something more fun or personalized. One example is the surge in spending on backyard additions like hot tubs, koi ponds and water features. These are more suited to the homeowner’s personal tastes than to what buyers might be looking for, and they can make it harder to sell your house later on.
If you’re planning to sell your house in the near future, it’s especially important to talk to a real estate professional about what renovations will actually increase the resale value of your property. You’ll also want to consider how your home will stand out among similar properties in the neighborhood. For example, if your neighbors have simple landscaping but you’ve added a lavish waterfall in the yard, it might detract from the appeal of your home.
Ultimately, you should spend money on home improvements that will add the most value to your property and enhance your quality of life while you’re living there. That’s a lot of decisions to make before you decide on the next renovation!