Home improvement is the work done on a house to make it better or more functional, often including adding new living space. This can include converting a garage into a bedroom, redoing a kitchen or installing a new bathroom. It also includes improving the outside of a house, such as painting or repairing the driveway. Home improvement is a big business with many professionals offering services, but there are also plenty of do-it-yourself (DIY) projects that can save you money.
Almost all homeowners have completed home improvements or renovations at some point, with sparkling bathrooms and basement remodels among the most popular projects. But while these upgrades may look good, they don’t always provide a strong return on investment, according to recent data.
The best way to get the most bang for your buck is to focus on projects that add functionality, such as adding an extra bedroom or bathroom, says Matke. This is a great way to meet family needs without spending a lot of money.
Avoid projects that are purely personal, such as that fancy water feature and koi pond in the backyard, she cautions. They are unlikely to appeal to a broad range of buyers and could even deter some, she notes.
When it comes to funding these projects, most homeowners use their own savings for the majority of home improvements, but those with more costly projects rely on sources like cash-out refinancing or home equity loans, contractor arranged financing and credit cards. In fact, 6% of respondents said they paid for their home improvements with something other than their own savings, according to the American Housing Survey.