Home improvement is one of the most popular ways for homeowners to add value to their property. But some projects are more worthwhile than others. For example, sparkling bathrooms and kitchen renovations are typically a good investment, while converting garages to living space tends to be a poor choice for most buyers.
To help you get the most bang for your buck, consult with a local realtor to learn which upgrades are most likely to appeal to buyers in your market. You can also consult online cost-vs-value reports to help you make the best choices. And don’t forget to consider a 10% buffer in your budget estimates for unexpected expenses.
Another way to save on your home renovation costs is to apply for a credit card that offers a low introductory rate or cashback rewards. However, remember that you’ll have to pay interest on the balance after the introductory period expires.
You may have to pay sales tax for labor on most home improvement projects unless you have documentation that the project qualifies as a capital improvement, such as a certificate from your state’s department of taxation and finance. Generally, the material cost of a capital improvement is exempt from sales tax in most states. If you’re in doubt, talk with your CPA or a qualified tax professional. This article was originally published on April 23, 2022 and has since been updated.