Home improvement is a big part of being a homeowner. From fixing a leaky faucet to adding on an addition, homeowners are always sprucing up their living spaces or making minor improvements.
But while some home improvements have excellent ROI values, others can cost more than they’re worth or may even decrease your property value. When you’re considering renovations, make sure you’re doing it for the right reasons.
Most planned home improvements aren’t aimed at potential buyers: Only 20% of those who plan to take on projects say their main reason is to make their homes more appealing to prospective buyers. Instead, 54% say they want to make their home more comfortable for themselves and their families, and 33% say that their house needs updates to be safe or functional.
Keeping up with home improvements can be expensive, and many people turn to credit cards or loans to cover the costs. But it’s important to be smart about how you’re financing a project, says Nashville-based planner Jeanne Fisher. “I’m a fan of a HELOC, which is a revolving line of credit based on the amount of equity you have in your home,” she tells Select.
Before you begin any major improvements, it’s a good idea to talk with a real estate agent about what’s most popular among buyers and the estimated return on investment. That way, you’ll know if your changes will add enough value to justify the costs and increase the chances of selling.