Home improvement is a term for any type of renovation, repair or maintenance work that enhances the value, functionality or comfort of your home. These projects can include remodeling rooms such as the kitchen or bathroom, adding or replacing fixtures like light switches and faucets, or even a new roof. In some cases, the scope of the work may extend to exterior improvements such as landscaping or paving.
According to the NerdWallet survey, homeowners who did home improvement projects in 2020 say they were able to pay for most of them without tapping into their savings or going into debt. In fact, most did so with money from other sources such as cash out refinancing, home equity loans or contractor arranged financing.
Projects that provide the best return on investment include those that add more living space, such as finishing a basement or adding bedrooms and bathrooms. Other high ROI projects include upgrading the kitchen, installing new windows, painting and replacing siding. Home additions and remodels that increase curb appeal also tend to perform well on the resale market, although some luxury upgrades don’t add as much value, such as outdoor fireplaces or fountains.
If you’re planning to sell your house in the near future, consider talking with a real estate professional before undertaking any major renovations that will impact the home’s value. However, it’s important to remember that renovating solely based on what will increase your home’s resale value can make your house feel too “showy” and detract from its overall comfort.