Home Improvement – Not All Home Improvements Are Created Equal
Home improvement, also called home renovation or remodeling is the process of improving or restoring an existing house or building. It’s a great way to add value and enjoyment to your home, but it’s important to keep in mind that not all projects are created equal. It’s important to choose projects that will increase your home’s value and make it more attractive to buyers if you ever decide to sell.
Whether you’re an avid fan of shows like Fixer Upper or This Old House, or simply want to make some improvements on your own, it can be helpful to have a plan in place before you start swinging that sledgehammer. But not all renovations are worth the investment, and some can actually have a negative impact on your home’s resale value.
Here are some tips to help you stay on track with your home improvement project and avoid common pitfalls that can quickly drain your wallet and leave you with a project that may not be the most valuable upgrade for your home.
A good rule of thumb is that any work that increases your home’s energy efficiency or structural integrity qualifies as a capital improvement and is tax-deductible, while cosmetic upgrades are not. However, since the definition of capital improvements can be confusing and may vary by local law, check with your state or municipality before you begin your project. Moreover, if you are hiring a contractor, it is best to get all promises in writing.