Home improvement is the repair, maintenance or enhancement of residential real property. It includes projects that add living space, improve the efficiency of heating, ventilation and air conditioning systems, upgrade kitchens and bathrooms, refinish or replace flooring and paint walls. It also covers landscaping and other outdoor improvements. Home improvement can be a do-it-yourself project or a large scale renovation.
A well-planned and executed home improvement project can increase the value of your property. However, it’s important to remember that not all home improvement projects pay off. Some, like adding a hot tub or fountain to your backyard, are more for personal enjoyment than for resale value. And some, such as a custom-built recording studio, are likely to turn off potential buyers.
Many projects are more expensive than you might expect. To avoid unforeseen expenses, it’s wise to get estimates from multiple contractors before making any major decisions. The quality of work and professionalism vary greatly, so be sure to compare contractor prices, experience and references before choosing one.
A well-planned and executed home improvement project not only can make your house more enjoyable to live in, but can also increase its resale value. Be sure to update your homeowner’s insurance as your house undergoes significant changes; an insurance professional can help you determine if an increase in coverage is necessary. Generally, capital improvements can be added to your cost basis and subtracted from the sales price of your home when you eventually sell it. However, it is important to check with a tax adviser before making any capital improvements.