Do home improvements increase the value of your home?

Don't despair, though. Home improvements can greatly increase the value of your home in the long run (especially if you decide to sell). You can also get a much-needed tax break if your renovation projects qualify. Courtney Klosterman, home insights expert at the home insurance company Hippo, is here to walk us through the specifics.

What are capital improvements?

According to Klosterman, capital improvements are projects that extend your home's life, add value, or refit your home for new uses. These differ from home repairs, which upkeep your home but don't necessarily add value (like fixing a leak).

Do repairs add value?

If repair-type work is part of the overall improvement, you may include it. However, not all repairs, like repairing a leak or patching a hole in drywall, necessarily add value, even though they do improve the quality of your home in the short term. There's a third category too.

Is the current market driving home improvements?

According to Cameron Johnson, the founder and CEO at Nickson Living, the current market is driving a lot of homeowners to make changes to their home s that will appeal to potential future buyers. According to Johnson, this has resulted in a big uptick in outdoor renovations, kitchen upgrades, and added smart home features, in particular.

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Imagine new countertops, adding a kitchen island, new appliances, or updated cabinets. While a full kitchen renovation can offer a lot of value, you can get a lot out of a light remodel. Tackle tasks like painting the walls and regrouting tile floors. You could also refinish the cabinets and polish or replace the hardware.

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· To add the most value to your home, consider strategic kitchen upgrades, bathroom renovations, extra living space enhancements, energy-efficient changes, and enhancing curb appeal.These improvements can greatly boost your property’s worth. Prioritize cost-effective transformations, modern fixtures, and energy-efficient appliances for long-term savings and enhanced aesthetics.

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