How Home Improvement Can Decrease Your Home’s Value

Home improvement

Home improvement is a large and growing industry. The category encompasses the sale of building materials, appliances and decor, as well as construction and renovation services provided by contractors and tradespeople. A number of popular TV shows are devoted to home improvement projects, including HGTV’s Fixer Upper and This Old House. Many homeowners undertake remodeling projects hoping that the improvements will boost their property’s resale value. But not all home renovations are created equal. Some can actually decrease a home’s value, according to experts.

It’s one thing to renovate your home with an eye on resale value, and another to go overboard. The key is to think about the type of home buyer in your neighborhood and choose renovations that will appeal to them, says a real estate expert. Walk around your neighborhood and pay attention to the types of renovations done in homes that have sold recently. You can also get ideas for your own project by looking at home listings in your area online.

Before starting a DIY home improvement project, think carefully about what your goals are. If you’re staying in your home for the long haul, pick projects that will make it better for you to live in, like updating the kitchen or bathroom. However, if you’re planning to sell in the future, choose renovations that will appeal to potential buyers, such as adding a deck or replacing outdated lighting fixtures.

A swimming pool may look luxurious, but it won’t add much to your home’s value unless you live in a warm climate. In most cases, a swimming pool will only increase your home’s value by about 7%, according to the online real estate site HouseLogic. It’s also important to avoid any home improvement projects that over-personalize your space. For example, built-in electronics such as a home theater or a wine cellar will turn off some buyers and can quickly become obsolete.

If you want to make some home improvements, it’s best to work with a professional contractor, rather than trying to do it yourself. It’s important to choose a reputable contractor and get references from previous clients. It’s also a good idea to compare prices before hiring someone for any work, as some companies provide discounted rates for multiple jobs and can save you money.

It’s important to know your skill level before attempting any DIY home improvement project. What starts out as a simple task can become complicated if you don’t have the proper tools or experience. For example, changing the bathroom or kitchen hardware can become a bigger project than you thought if you have to drill new holes and fill them in. It’s also a good idea for homeowners to review their insurance policy when they renovate, as an increased home value could require an upgrade to your current coverage. Getting an updated policy is easy through online insurance sites. Homeowners can also visit local home improvement stores to talk with an insurance agent.