Home improvement can include many different projects, from small repairs and upgrades to major remodels. These can be done for personal preference and comfort, to make a home bigger or as a means of saving energy.
The average American homeowner spent a half-trillion dollars on home improvement projects over the past decade, and spending is likely to rise even more in the future. Despite a potential recession and inflation, more than 75% of homeowners say they plan to take on home improvement projects in 2022, according to a new survey by Nationwide.
Most homeowners do not plan to sell their homes in the next two years, so they aren’t targeting buyers with these projects. Instead, 54% say they want their homes to be more comfortable and 52% are seeking a sense of satisfaction.
Before any major renovations, it’s a good idea to consult a realtor or an interior designer. These professionals can show you ways to fix up your home without breaking the bank.
Investing in mid-range upgrades can pay off big for your home’s resale value. Upgrades that don’t have a high resale value, such as converting garages, can actually hurt your home’s chances of selling.
Tax-wise, money you spend on home improvements is considered capital and adds to your cost basis, which will help when you eventually sell the house. Certain energy-saving improvements also can be eligible for tax credits.
When planning for a home improvement project, it’s a good idea to model it out on a floorplanner so you can see what your new space will look like. This will give you a sense of how much the project will cost and how long it might take, as well as help you avoid costly design mistakes.