Home improvement, or home renovation, is a popular way to make your house more comfortable and stylish. It is also a great way to boost your home’s resale value and improve its overall function. However, it’s important to consider your budget and what improvements will have the most impact before starting a project.

According to the 2021 American Housing Survey, 78% of home improvement projects were funded with cash. However, when it comes to more costly projects, funding choices become more complicated. For example, 14% of homeowners who completed a major home improvement project over the past two years said they had to sacrifice other purchases, tap into savings, sell items or take out credit cards or loans to pay for it.

Among the most common projects that increase a home’s resale value are adding an extra bedroom or bathroom, replacing a front door and installing a security system. However, it’s important to keep in mind that some improvements will not add significant value because they are too personalized or go beyond the taste of the average buyer. Also, it’s a good idea to talk with a real estate agent before making any high-end changes that may not appeal to the majority of buyers in your area.

It’s also important to perform routine maintenance on your home, such as replacing worn doorknobs, cleaning the gutters and repairing cracks in sidewalks. Neglected maintenance tasks will be discovered by a home inspector and can cause serious problems later on.