During the COVID-19 pandemic, many Americans took on DIY projects to make their houses more comfortable during extended periods of stay-at-home. But these rennovations weren’t always a smart financial decision.
Home improvement entails more than just a new kitchen or a fresh coat of paint. The best home improvement projects don’t just add value to your house, they also provide a return on investment when you sell it. However, the most common upgrades, such as marble floors or an above-ground pool, don’t typically recoup their costs, especially if they’re out of step with other homes in your neighborhood.
The category that saw the biggest surge during the two-year period from 2020 to 2021 was work on outdoor projects, like putting up fences and building decks. These projects rose almost threefold, Anderson says, as people took advantage of their mandated time at home to get their hands dirty and improve their living spaces.
But many of these projects aren’t cheap: 20% of homeowners who worked on home improvements reported having to sacrifice other discretionary spending or go into debt to pay for their renovations.
But what if you could find ways to upgrade your home without running out of savings or going into debt? If you’re careful about the projects you choose, and stick with ones that are likely to appeal to most buyers, you can still increase your home’s resale value. For starters, focus on enhancing the curb appeal of your home with low-cost, high-value projects like painting and power washing.
