A home improvement is the repairing, renovating, enhancing, altering, converting or modernizing of any part or the whole of a residential building. It may also include the construction of a new building or addition to a existing one. Home improvements can be done to increase the resale value of a house or to make it more comfortable and attractive to live in.
Many homeowners embark on a home remodel or renovation with an ulterior motive: the hope that the project will add to the house’s resale value. This can be a mistake.
While updates like new kitchens and bathrooms are usually safe bets, other projects — such as a swimming pool or a remodeled basement — can actually decrease the resale value of your home. The bottom line is that you have to balance your personal wants and needs against what potential buyers will want and be willing to pay for in your market.
The best way to finance a home improvement is to use the equity in your home with a home equity loan or line of credit. However, if you don’t have equity or don’t want to risk your mortgage, personal loans are also available.
If you’re in the market to improve your home, start by making a list of what needs to be done and prioritize the items that need to be addressed immediately. Then, consider how each renovation or remodel will affect your resale price and budget accordingly.