Home improvement, also known as house renovation or remodeling, is the process of modifying a building to make it more functional, attractive, or up to date. Home improvements can include changing room layouts, redecorating, and adding or removing features. Some projects are minor, while others can be significant. Home improvements can be made for a variety of reasons, including improving the home’s value and making it more comfortable to live in.
In the past few years, homeowners have been spending money on a host of home improvement projects. In fact, according to a new report from the Real Estate Witch, Americans have spent more than $3,890 on renovations over the past year alone. While many of these projects may help homeowners get more money back when they eventually sell their houses, not all renovations are created equal. Some can even decrease a house’s value.
The most common home improvement projects are kitchen and bathroom updates, exterior paint jobs, and replacement windows. Some of these projects can be done by the homeowner, while others require professional installation or skilled labor. For example, installing a new kitchen sink or countertop can be fairly simple, but replacing your front door might require the services of a licensed and insured contractor.
Aside from the benefits of enhancing your living space, some home improvements can help you save money on energy bills. A good example is the installation of a smart thermostat. These devices can monitor your heating and cooling use, adjust accordingly, and even alert you to potential problems like a broken air conditioner. A smart thermostat can help you save up to $200 a year in energy costs, so it’s well worth the investment.
It’s also important to keep in mind that any money you spend on home improvements will be tax-deductible if they meet the government’s definition of a capital improvement. That means the project adds to the “cost basis” of your house, which will be subtracted from the sales price when you eventually sell it. This is why it’s so important to save receipts and document all of your expenses.
Homeowners often embark on renovation projects with the hopes that it will improve their homes’ resale value. However, it’s important to remember that the value of your home is based on the overall market, not just your neighborhood. For example, renovating a house to make it look significantly more expensive than the rest of the neighborhood can actually lower its value. This is why it’s important to research the average prices of houses in your area before starting any major home improvement projects.