Home improvement is a popular pastime for many homeowners. Some of these projects increase the value of your home, while others simply make it more livable. Regardless of why you decide to remodel, it’s important to know how much you can expect to recoup on your investment.
Americans spent heavily on home improvements during the COVID-19 pandemic, but the frenzy seems to be cooling down. According to Harvard University’s Joint Center for Housing Studies of America, the leading indicator of remodeling activity is predicted to drop in 2024. Despite the slowdown, homeowners are still investing in their homes. However, if you want your project to pay off in the long run, it’s crucial to choose upgrades that will add both function and value.
For instance, while marble flooring may be your dream choice, it isn’t likely to add resale value. Instead, opt for midrange upgrades that will appeal to most buyers. You should also try to keep your renovations consistent with your neighborhood’s style. A basement conversion is a great way to add living space, but it’s not going to do much for your resale value if every other house on the block already has one.
Finally, it’s also wise to have a clear plan in place before you start any work. Otherwise, you could end up overspending and going into debt. To help you stay on track, set a realistic budget and stick to it. You can also use a secured loan, like a HELOC (home equity line of credit), to finance your renovations.