Home improvement projects aren’t always easy or cheap, but there’s no denying that they can add value to your home and make it feel more like yours. And the good news is that there are plenty of DIY and professional tips out there to help you save money on your home improvements without sacrificing quality.
Painting & Wallpapering
The average homeowner plans to spend $7,746 on home repair and improvement projects over the next two years, according to a NerdWallet survey. That’s up from $6,251 in 2020.
This increased spending is due to a shortage of workers that’s caused prices for building materials to rise. And it’s also because homeowners are looking for ways to spruce up their homes, Angi says.
A fresh coat of paint is a popular project that can make even old houses look fresh and new. And it doesn’t have to be expensive: a single can of paint costs around $15.
Repainting dated exteriors or interiors can give your home a fresh new look, especially when you’re working with a limited budget. Plus, a fresh coat of paint can actually increase your home’s resale value.
Updates & Additions
Some common house renovations include adding bedrooms and bathrooms, converting garages into living space and renovating kitchens. These can add up to a lot of square footage, so it’s important to plan carefully and get advice from a real estate pro before you take on any projects that will increase your home’s resale potential.
But beware of over-personalizing your home, as it can actually hurt your resale price. Many people make the mistake of splurging on high-end light fixtures, marble floors and other expensive upgrades that aren’t necessary. Instead, invest in quality mid-range options that will appeal to a wider audience and won’t raise your home’s price when you sell.
Keep the Costs Low
The best way to avoid going into debt for a renovation is to save a chunk of cash first. This will allow you to complete the renovation without putting it on a credit card or taking out a loan.
And if you do go into debt, don’t let the interest on your credit card add up to more than 20% of what you’re spending on the project. This can quickly eat away at your cash flow and put you in a bind.
Taxes & Insurance
If you’re planning to renovate your home, you may want to consider a certificate of capital improvement. These are typically required if you want to claim a deduction for the project when you file your taxes.
These tax breaks are a big incentive to do home improvements, so it’s important to research the details of your particular situation.
Depending on where you live, you may also be able to take advantage of state or local incentives for energy-saving home improvements. Check with your state’s tax department for details.
In addition, if you’re planning to sell your home in the near future, it’s important to do any necessary repairs before you sell. A leaking roof, termite infestation or outdated electrical system can all impact your property’s worth. It’s also worth having your home inspected by a professional before you spend any money on improvements.