Home improvement, also known as home renovation or remodeling, is the process of upgrading one’s living space by making repairs and changes to their house. This can include anything from fixing a leaky faucet to adding an addition onto the house. It can be done for a variety of reasons; personal comfort and convenience, increasing property value to prepare for a sale, or simply as a hobby. The home improvement industry is made up of companies that sell building materials, appliances and decor, as well as contractors and tradespeople who perform the actual improvements.
Many homeowners choose to renovate based on their return on investment (ROI), which can vary widely from project to project, with some recouping over 100% of the original cost. However, it is important to remember that your ROI may be impacted by the local real estate market and neighboring home values. You should always consult a professional before making any major improvements to your home.
According to our September survey, more than three-fourths of homeowners who have done projects in the last two years say they were easily able to pay for them without tapping into savings or going into debt. That’s a great thing, but it’s also worth noting that more than half of those homeowners still reported having to take out some type of financing to complete their home improvement projects.
Some of the top performing home improvement projects for adding value to a property are sparkling bathroom overhauls, new kitchens and finishing basements. However, homeowners are generally only able to get back about 60% of their initial investments when they sell their homes.