Home improvement, also known as renovation or remodeling, involves improving an existing home. This includes changing the structure of the house, upgrading its systems such as electrical and plumbing, and adding or removing rooms or building an addition to the home. It may also include changes to the yard and landscape. Home improvements can be done for a number of reasons including to make the home more comfortable, to update its look, or to increase its value.
The housing market slump may have cooled the home improvement frenzy, but homeowners still plan to invest in their property. In fact, according to Harvard University’s Joint Center for Housing Studies of America, homeowner spending on home renovation projects is projected to rise again in 2024, after falling in the previous year.
Considering the high cost of some renovations, it’s important to think about the return on investment before you get out your sledgehammer. It’s easy to get caught up in the excitement of planning a project, but it’s critical to assess what you can afford and research different financing options, comparing rates, terms and qualification requirements.
One common mistake that many homeowners make is spending more than they can afford on upgrades. For example, installing marble countertops in a kitchen may be luxurious, but it won’t necessarily add to the resale value of your home. Likewise, converting a garage into a living space may increase your home’s square footage, but it probably won’t attract buyers in your neighborhood.