Home improvement is a broad term that includes any renovation, remodeling, upgrade or addition to a home. It also can refer to making your home energy efficient or improving the curb appeal. The industry is a vital part of the economy, and it has reached excellent growth results in recent years.
The home improvement industry includes the sale of building materials, appliances and decor, as well as contractors, builders, painters, handymen, and other professionals who help homeowners with their projects. The industry is growing despite the COVID-19 pandemic because many people are spending money on home improvements, particularly those that add value to their properties.
Homeowners want to make sure that any renovations or upgrades they undertake will pay off in terms of resale value when they decide to sell their homes. While no single project will recoup 100% of its cost, many high-quality upgrades can increase a property’s value by increasing buyer interest.
A number of homeowners believe that improving their curb appeal will boost the value of their homes, and this can be a good idea. However, it is important to keep in mind that curb appeal doesn’t necessarily translate into higher resale values. For example, installing marble flooring in the master bathroom may not be attractive to all buyers, and it won’t necessarily entice them to pay more for your home than other comparable homes on the market. Instead, focus on upgrades that are more universally appealing and will likely be of interest to most buyers.
Another common home improvement strategy involves creating equity in your home by taking out a loan and using the funds to make improvements. This is a good way to improve your property, but it’s not the best method for adding long-term value to your home. Real estate prices often fluctuate, and if you’re only relying on this method to increase your home’s value, you could be disappointed when the housing market crashes and home prices tumble.
The categories that are surging the most for home improvement this year include work on the outside of the house, such as landscaping and putting up fences. Anderson says these projects are favored by homeowners because they can be done on a budget and don’t require as much planning and coordination with pro services.
Homeowners are also increasingly focusing on repairs that will keep their properties in top condition, such as fixing leaky roofs and replacing worn exterior paint. This can be a wise move because even minor problems can become expensive if they’re left untreated, and these fixes can also help prevent damage to the interior of the home. The good news is that these types of repairs typically don’t affect resale value as much as larger improvements, such as adding a new bathroom or a great room.