Home improvement, a genre of DIY projects that include everything from painting to landscaping, is a perennial favorite among homeowners. Some of these upgrades can even boost your home’s value and earn you a tax break. But, not all home improvements are created equal. Some can actually decrease your home’s value. So, before you take on any project, read up on what you should (and shouldn’t) do to your home.
The ’60s-style, saxophone-dominated instrumental rock tune “Tool Time” was an appropriate choice as the theme music for the hit ABC TV show Home Improvement. The program ran from 1987 to 1995, with its stars Tim Allen, Steve Martin, and Randy Travis providing viewers with useful tips and tricks on how to complete various tasks around the house. The show’s success was due to its wry humor and the relatability of its characters.
As the pandemic has made Americans spend more time at home, some homeowners have used this opportunity to invest in remodeling projects. But a cooling housing market, higher interest rates, and stubbornly high inflation are all weighing on home renovation spending. In fact, Harvard University’s Joint Center for Housing Studies predicts that homeowners will spend $449 billion on home improvements in 2024, a significant drop from the $722 billion spent in 2018.
Still, some projects seem to be surging. Among the categories climbing the most, according to NerdWallet’s September survey, are building decks and fences and hiring landscapers. These are projects that can be completed quickly and relatively inexpensively.
These are also the kinds of projects that can add to a home’s curb appeal, making it more appealing to potential buyers. Other popular projects on the rise are refinishing hardwood floors and installing new lighting.
It’s important to think about the long-term impact of any home improvement you plan to undertake, especially if you are considering selling your home in the future. The last thing you want to do is overspend on a project that will lower your home’s resale value.
One of the most important things you can do to avoid overspending on a home improvement is to budget carefully and stick to it. This will help ensure that you can pay for the project without dipping into your emergency savings or going into debt. According to the NerdWallet survey, about half of the people who have done home repairs or improvements in the past two years say they were easily able to meet their planned budget for these projects.
It’s also wise to keep in mind that many of these projects can wind up being more expensive than you initially anticipated. For example, you may end up with a leaky roof or a foundation that needs to be replaced more quickly than expected. But if you do your research and choose smart projects, it’s possible to make your home more livable, increase its value, and enjoy some peace of mind at the same time.