Home Improvement Basics
Home improvement is a broad term that can refer to any project or renovation done to improve the functionality, look or value of one’s home. Some projects that qualify as home improvements include remodeling a bathroom or kitchen, adding an addition to a house, building a deck, painting, refinishing wood floors, or installing a new roof. Many homeowners undertake home improvements on their own while others hire a professional contractor to complete the work.
Before undertaking any major home renovations, it is recommended that homeowners obtain quotes from multiple contractors and compare rates and qualification requirements. Homeowners should also verify that contractors have a valid business license, liability insurance and a solid reputation. A number of companies offer aggregation services, acting as middlemen between home improvement contractors and consumers. Homeowners should also check whether these companies are members of a trade association and ask for references from previous customers.
It is important for homeowners to understand what kind of upgrades will add value to their property. For example, upgrading a bathroom with marble flooring will likely increase the cost of the renovation but may not add as much value to the home as replacing old carpet with hardwood flooring. Homeowners can also save money by making energy efficiency upgrades in coordination with their renovation plans.
Homeowners are becoming increasingly interested in investing in home improvement projects. According to the Joint Center for Housing Studies of Harvard University, spending on residential remodels surged in recent years as consumers rushed to upgrade their homes. However, the frenzy appears to be cooling as homeowners focus on completing more modest upgrades.
Despite the slowdown in the housing market, homeowners still see improvements as an affordable way to enhance their living space and increase home value. In the past few years, renovations have included constructing porches, putting in fences, and putting in pools. Homeowners are also updating their kitchens, bathrooms and bedrooms. Some of the most popular home improvement projects are adding a master suite and installing energy efficient appliances.
It is essential for homeowners to budget carefully for any home improvement projects. If they are not able to afford the full project, they should consider using financing options available from private lenders or government-sponsored programs. Homeowners can also use savings or equity in their home to pay for the renovations. Alternatively, they can try to pay down other debts before applying for a loan.
Homeowners should consult with a real estate agent before undertaking any major home improvement projects to ensure they are making the right investment. They should also keep in mind that the resale value of their home will be affected by the quality of upgrades and the amount they are willing to spend on renovations. Moreover, they should avoid making upgrades that are expensive or not consistent with the rest of the neighborhood. For example, installing a swimming pool in an area where the majority of homes have garages will not add as much value to the property as it would in a more upscale neighborhood.