Home improvement is an industry that encompasses the sale of building materials and decor, as well as the services of contractors or tradespeople to remodel, repair, renovate or upgrade homes. The sector experienced significant growth during the COVID-19 pandemic, when consumers focused on sprucing up their properties and preparing for potential future disasters. It is expected to continue to thrive as homeowners remain hesitant to sell and are instead opting to invest in their existing property.
With mortgage rates at record highs and real estate prices lower than they’ve been in years, many people are choosing to stay put rather than move. This means more home renovations are taking place, with the most popular projects being kitchen and bathroom remodels. Many people are also adding a master suite to their home, which can add value and increase the chances of selling in the future.
Other popular projects include removing or planting trees, putting up a fence, sprucing up the backyard with a fire pit or hot tub and installing new windows. Homeowners are also using smart technology to improve their home’s energy efficiency, such as by installing a smart thermostat that can adjust depending on current gas or electricity prices.
Regardless of what you do to your home, it’s important not to go overboard. Excessive upgrades might not pay off when it comes time to sell. For example, you might not get back the money you invested in marble countertops if your house isn’t even worth $200,000. A better idea is to focus on updates that will appeal to a wide range of buyers.
Another thing to keep in mind is that any home improvements you make might affect your tax bill. Be sure to talk with a certified CPA and your state’s department of taxation before beginning any project. Also, be aware that certain upgrades might qualify as capital improvements and not taxable. For example, you might not have to pay sales tax on labor if the work is done by a contractor and is considered repairs or maintenance.
It’s also important to check with your home insurance agent to make sure you have the right amount of coverage. Often, when people renovate their homes, the value of their property increases and their old policy might not provide adequate coverage. Adding a master suite, for instance, could bump your policy up to the next level. Fortunately, you can usually get a free quote by calling your insurer. This allows you to compare options and find the best deal on your home insurance. With the right information, you can get the right amount of coverage for your home and avoid paying unnecessary fees. This way, you can rest assured knowing that your home is safe and secure. For more helpful home improvement tips, browse through Brandpoint’s free articles, which cover everything from DIY projects to how to choose the perfect paint color.