Home Improvement and Resale Value

Home Improvement and Resale Value

Home improvement is a common activity that can make your house a more comfortable place to live. However, it is important to understand how a certain type of project may affect your home’s resale value. Some projects are more expensive than others, but not all add the same amount of money to a home’s sale price. A good way to determine how much a project will add to your home’s resale price is by looking at its ROI, or return on investment. This is typically given as a percentage and can be found by researching your project online.

One of the most popular home improvements is adding an extra bedroom and bathroom. This is often a high-cost project, but it can increase the value of your home and provide more living space for your family. However, be careful not to overspend. Some upgrades, such as a new kitchen or master bathroom, do not usually add a lot to your resale value. Generally, you should spend less than 50% of your home’s total value on a remodel.

Home renovations were very popular following World War II as returning veterans took advantage of mortgage insurance programs for buying homes. These helped fuel a housing boom that expanded urban areas and suburbs, as well as led to the rise of big-box retailers like Home Depot and Lowe’s.

Whether you are planning to sell your home or simply want to make it more pleasant to live in, there are many ways to improve your home without spending a fortune. From painting and re-grouting tile to power washing and cleaning gutters, there are many do-it-yourself home improvement ideas that can add real value to your home.

It is also important to find a contractor who you can trust. There are a wide range of contractors who offer the same services, so it is important to compare all factors, including pricing, experience, reputation, and length of time in business. Also, don’t be afraid to ask for references and check the Better Business Bureau.

If you do decide to hire a professional, be sure to get a written contract. This should include the date work will begin and be completed, a payment schedule, and as much specificity as possible (such as types or brands of materials). The contract should also contain any warranties for the work performed and include a disclosure that you will not pay the contractor until the work has been completed and all required inspections and certificates of occupancy have been finalized. Lastly, the contract should contain an arbitration clause. If this is not included, you may be able to file a claim against the contractor with the Small Claims Court. However, this option is not available in every state.