A couple of years back, housing prices skyrocketed and interest rates hit rock bottom. Homeowners everywhere refinanced or took out home equity loans for remodels, pools, and decks. Backyards became outdoor living areas. Home Depots spawned Expo Design Centers and soon granite countertops were de rigueur. As conspicuous consumers we contented ourselves that these improvements were worth it because they increased the value of our homes.
But what kind of return did we get on our investments? The truth is that most home improvements cost more than they add to the value of your home. And no improvement is valuable if you can’t sell your home. So before you run out willy-nilly remodeling this and that, ask yourself how soon you want to sell that house. Sometimes inexpensive home improvements are best for the short term.
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