Home improvement is big business, and it’s not just for DIYers with a hammer. Whether you’re upgrading for resale or simply because, there are many smart ways to add value to your property.
But before you swing that sledgehammer, make sure you understand how much popular projects cost and what returns you can expect on your investment. And remember that buyer preferences vary from market to market, so it’s best to focus on renovations that are popular in your area.
The categories that are surging the most in terms of renovations this year are work on the outside of a house, with an almost threefold increase in the number of people building decks and putting up fences. Another category that’s growing is fixing or replacing windows, as well as adding insulation. Those types of improvements are viewed as good investments by potential buyers, who are often concerned about high energy bills.
However, it’s important to note that not all home improvement projects increase a house’s value, and some even decrease it. To avoid making costly mistakes that could turn off a buyer, it’s a good idea to consult with a real estate professional to get their thoughts on the most effective way to improve your home.
When it comes to financing home renovations, experts recommend that you use cash where possible and only borrow money if it won’t jeopardize your ability to repay the debt in the future. If you do need to borrow, an unsecured personal loan is often a better choice than credit card debt, as it has a lower interest rate and won’t damage your creditworthiness as significantly.