Home improvement is a term used to describe the various activities homeowners undertake to modify their dwellings. While some projects are simply cosmetic, others are designed to increase a home’s value or functionality.

The most common and popular types of home improvement projects include bathroom remodeling, kitchen remodels and basement renovations. Homeowners also may choose to spruce up their outdoor living spaces by building decks or putting up fences.

According to the latest American Housing Survey, about 3 in 5 homeowners have done some type of home improvement project over the past two years. Of those, most were able to pay for the majority of their work without tapping into savings or going into debt.

For those who can afford to take on a larger project, it’s important to accurately estimate the cost of the job and leave room for unforeseen expenses. In addition, it’s a good idea to find out if a contractor is licensed and insured before hiring them. For example, if you live in New York, you should be sure the contractor has documentation from the state Department of Taxation and Finance that the project meets the definition of a capital improvement and is therefore exempt from sales tax on labor and materials.

Many people undertake remodeling projects with an ulterior motive – they hope that the improvements will boost their home’s resale value. But it’s important to remember that not all improvements add value and, in some cases, can actually decrease a home’s value over time.