Home improvement is a major industry that encompasses the sale of building materials, appliances and decor for use in improving, remodeling or upgrading homes. It also includes services offered by professionals, such as contractors or tradespeople. Home improvements often provide a good return on investment. In addition, certain projects, such as replacing old windows or installing solar panels, can earn homeowners tax credits at the time of their installation.
One reason for the surging interest in home improvements is the popularity of HGTV shows such as Fixer Upper and Flip or Flop, which showcase house renovations as money-making ventures. In addition, rock-bottom interest rates make financing home improvements affordable for many people. And in an unsettling economic environment, investing in a home can be a comforting project.
However, some home improvements may actually decrease a house’s value. For example, a home recording studio might appeal to an audiophile but could turn off buyers who would want to put that space to other uses. And although a swimming pool might make your home more attractive to potential buyers, it’s usually not the best way to increase your property’s resale value.
Still, some home improvements can add significant value to a home. A new kitchen, for instance, can yield an 83 percent ROI, according to the home remodeling loans platform RenoFi. Other high-return projects include updating bathroom vanities, shower areas and fixtures, installing new floors and adding crown molding. While some homeowners may be tempted to complete these DIY projects, it’s always wise to hire a professional the first time out. This will ensure that the work is done properly and to code, which can reduce the risk of costly re-work down the road.