Home improvement includes repairing, remodeling, altering, renovating, restoring, modernizing or improving the structure and fixtures of a residential building. It also involves installation of heating and air conditioning systems, insulation, doors, windows and awnings. It excludes the building of a new house, appurtenant structures, fences, landscaping and nonpermanent construction materials.
The most common home improvements include refreshing shower areas, replacing vanities and toilets, laying new tile or countertops, and adding fixtures and lighting. These projects typically yield a high return on investment and won’t break the bank. Luxury upgrades, however, don’t always pay off, especially if they are out of proportion to the rest of the house. For example, adding marble floors to a ranch-style home might not appeal to buyers seeking value and livability.
When budgeting for your home improvement project, it’s important to set savings goals and stick to them. It may be tempting to finance your renovations with a credit card, but be wary of interest rates, which can quickly rise and outpace the cost of the work. Instead, if you have excellent credit, consider a loan from your bank or a home equity line of credit.