Making the Most of Home Improvement Investments

Home improvement is an industry that includes the sale of building materials, appliances and other equipment used to make improvements on a residential property. It also includes work performed by contractors, tradespeople and other professionals who assist homeowners in completing renovations and other projects that add value to their properties. Home improvements are popular amongst consumers, and the industry has seen some great growth results in recent years.

Whether it’s fixing that leaky roof or giving the kitchen a facelift, a homeowner is constantly working on improving their property. While some projects may be a sunk cost (that is, they won’t add value to the home), others can actually boost property values and even provide tax breaks. Home insights expert Courtney Klosterman from home insurance company Hippo explains how to make the most of these investments.

One of the most important things homeowners can do to improve their homes is to attend to basic maintenance tasks like painting and sealing gaps between walls and baseboards, she says. This can help prevent serious problems like mold and water damage that could lower the value of a property.

However, it’s best to hire a licensed professional for certain jobs such as electrical and plumbing repairs and replacements, she warns. Doing this can avoid costly mistakes and save time. Additionally, homeowners should research potential contractors thoroughly before hiring one to ensure they’re reputable and insured.

While spending on home improvements has cooled since the pandemic ended, many consumers are still planning to tackle projects. But with interest rates rising and inflation in the air, it may be difficult for them to recoup their investment in the long run.

Despite this, some homeowners are choosing to make improvements that will increase their comfort and satisfaction with their homes, such as installing new landscaping or replacing old carpet, according to the survey. Another major motivating factor is making their homes more energy-efficient, which has become a priority for many consumers.

Homeowners aren’t likely to start putting their plans for home improvements on hold until they see an actual decline in the value of their houses, says Joe Derochowski, an adviser at market data firm Circana. In fact, many are simply deferring more ambitious renovations as they watch their finances, he says.

The bottom line is that homeowners can make a significant return on their home improvements when they are careful about what they choose to do and how they go about it. However, it’s also worth remembering that not all improvements add value to a house—particularly those that are highly personalized or don’t fit with the style of other homes in the neighborhood. And even if an upgrade does increase a house’s value, that doesn’t necessarily translate into a profit when it comes time to sell the property.

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