Home improvement, also called home renovation or remodeling, refers to work done on the interior or exterior of an existing home. Home improvement projects may be carried out for a variety of reasons, including improving comfort, adding to the value of the home, or to make it more energy efficient.
While some home improvements have a high return on investment, others do not. It is important to weigh the benefits and costs of a project before starting it. The best way to determine the return on your investment is to consult a real estate professional.
When it comes to resale value, remember that personal tastes and preferences play a role in what buyers are looking for. Renovating solely to increase resale value can backfire, especially if the project is too customized. For example, while you may love your home recording studio, a potential buyer will likely find it a turnoff and choose another home.
The categories that are surging right now, Anderson says, have to do with home improvement work outside the house, such as installing a deck or building a fence. This is partly due to the rock-bottom interest rates, which have made homeownership more attractive. However, the trend is also driven by the desire to create outdoor spaces that are both functional and appealing, as well as a willingness to pay for energy-saving upgrades. In New York State, material cost for home improvement projects is tax-exempt if you have documentation of a capital improvement.