Home improvement is an investment in your property and a way to increase its value. But not all renovations pay off. Some actually decrease your resale price or make the house harder to sell. It’s important to plan a budget and stick to it, but also to consider whether any project is worth the cost in the long run.
Kitchens are one of the best places to invest in your home. A renovated kitchen will likely increase your home’s value, especially if you replace older appliances with newer, more energy-efficient models. You can also add extra storage or a breakfast bar to make it easier for you and your family to get out the door in the morning.
The bathroom is another important area to improve if you want to boost your home’s value. Replacing old bathtubs with new showers, and updating toilets to low-flow models, can significantly reduce your water bills and save you money in the long run.
Spending on home improvements has grown since 2010, when it hit a low during the recession. People in their 50s are the biggest driver of that trend, according to the Harvard Joint Center for Housing Studies.
If you’re a homeowner, it’s important to focus on your own comfort and enjoyment of the space before you think about what will add or detract from your home’s resale value. But you should always be sure any work is done with the proper permits by a licensed professional. And be cautious about over-personalizing your renovations, as this could scare off potential buyers when it comes time to sell.