Home improvement, also called house repair, is the process of renovating or improving a home. It includes a wide range of projects from remodeling kitchens and bathrooms to adding an extra room. Home improvements can increase a home’s value and help it sell faster. But not all projects are created equal.
According to a NerdWallet survey, most homeowners plan to spend about $7,746, on average, on home improvement projects over the next two years. And a majority say they’re doing so to make their homes more enjoyable. But most don’t plan to target potential home buyers with their upgrades. That’s because most of the improvements they have in mind aren’t meant to add resale value.
A few common home improvement projects are likely to add a good return on investment, especially when they’re done with an eye toward appealing to a broad spectrum of potential buyers. Examples include replacing old flooring or appliances with new, quality midrange options that won’t break the bank. Other high ROI fixes are repairing small problems (like a leaking roof or termite infestation) and making energy efficiency upgrades such as installing new windows or a heat pump.
The biggest return on most home improvement investments is often in the form of a lower utility bill. But many people also get a good return by choosing projects that improve their home’s safety and security. This may include upgrading the alarm system or installing a security door, both of which can increase home value and make it safer and more comfortable to live in.