Home improvement is a common activity among homeowners. Whether it’s renovating the kitchen, adding a deck or building a fence, many homeowners believe that these projects will increase their home value. However, these projects may not always be worth it. Home improvement projects can be expensive and can result in debt. The best way to make sure that your home improvements are worth it is to work with a professional who will ensure the project is done correctly and will increase your property value.
Some home renovations will increase a home’s resale value, such as installing a master suite or adding a bathroom. A new kitchen will also add value to your home, as long as you keep the color schemes consistent with the rest of the house. However, some projects will decrease a home’s resale price, such as installing an above-ground pool or an unattractive garden shed.
Adding an extra bedroom or bathroom is another popular way to add value to your home. This is a good idea for families who need more space or for those who plan to sell in the future.
According to the NY State Department of Taxation and Finance, the material cost for home improvement is tax-exempt if you have documentation that the project is a capital improvement. The documentation can be received through a contractor’s certificate of capital improvement or by the homeowner with an IRS document.