Home improvement is a common project undertaken by homeowners. In fact, it’s often more than just a project — it’s an investment in the value of your home. That’s why it’s important to consider the ROI (return on investment) of any home improvement project before you begin. Whether you’re selling your home or just looking to improve it, there are many projects that will provide a good return on your investment. Some of these are low cost, and can be done by any homeowner. Others are more complex, and require a contractor. Some of these will add high value to your home, and can be used as selling points when you’re ready to sell.
Regardless of what projects you decide to take on, the most important factor is how much money you can afford to spend without going into debt or running through your savings. This will determine the types of projects that are possible and the amount of resale value you can expect to get.
According to the NerdWallet survey, about 3 in 5 homeowners have taken on at least one home improvement project since the start of the pandemic. They spent an average of $6,438, and a majority say they were “easily able to pay for the majority of the work without tapping into their savings or going into debt.”
A key reason for this is because rock-bottom interest rates make home improvements more attractive. In addition, more people are choosing to stay put and invest in their current homes instead of buying new ones. “With a high level of uncertainty in the market and a lack of supply due to housing shortages and contract backups, buyers are staying put and renovating their existing properties,” Anderson says.
In terms of what upgrades are popular in 2023, experts expect to see a rise in projects that increase energy efficiency and help reduce utility bills. This will be in addition to projects that add curb appeal, such as a fresh coat of paint.
Other potential projects that could boost a property’s value include replacing old doorknobs and re-grouting tile, as well as performing routine maintenance, such as sealing cracks in your foundation and repairing gutters and sidewalks. These are the types of updates that may not be as aesthetically pleasing to you, but that will still appeal to a buyer because they will make the property more livable and comfortable. Also, it’s crucial to communicate with contractors about any safety concerns you have during a project. This includes making sure they’re wearing masks, and that they have a clear understanding of the scope of the job. It’s also a good idea to ask for an arbitration clause. This will protect you in the event of a dispute between you and your contractor. A mandatory arbitration provision will usually state the name and address of the arbitrator and the fee schedule, and must be initialed and dated by both parties.