Home improvement is any activity that improves the value of a residential property. It may include anything from a minor repair to major remodeling work. Such work often includes the installation of a new kitchen or bathroom, as well as painting and flooring updates. Home improvements can also be an opportunity to make a house more energy-efficient and environmentally responsible.
Some home renovations are more likely to boost a homeowner’s return on investment (ROI) than others. For example, sparkling bathroom overhauls and finished basements typically offer excellent ROIs. But other renovations are less certain to pay off down the line, such as installing a pool or hot tub.
Regardless of the reason for a home improvement project, it’s important to find a reliable and trustworthy contractor to complete the work. Many contractors offer online reviews and a rating system, which can help homeowners choose the right service providers for their needs. Homeowners can also contact aggregators, which act as an intermediary agency between contractors and homeowners. These services allow homeowners to perform a number of checks and verifications before hiring a contractor for their work, including a license and insurance check.
When choosing a home improvement contractor, it’s best to work with someone who is licensed by the local state licensing authority. However, some contractors are not registered and may be operating illegally in the market. If you’re not sure whether a particular contractor is licensed, ask them for a license certificate and contact your local state licensing authority to confirm registration status.
If you’re planning a home improvement, consider how it might affect your ability to sell your home in the future. Then, plan your budget accordingly. If possible, save up cash to fund your projects, or use a home equity line of credit instead of going into debt. This option gives you a fixed interest rate, so your payments will be the same over time, and it’s tied to your home’s equity, which means it’s a secure form of financing.
A well-planned and executed home improvement project can increase a property’s value and give the owner a greater sense of pride and satisfaction with the space. It can also improve overall home safety, comfort and security. Homeowners are looking to renovate their homes even more during the pandemic, with 20% of them using tax refunds on these types of projects this year, according to a study by Groundworks Companies.
Rock-bottom interest rates are making it a good time to invest in home improvements. But be careful not to go overboard. If you spend too much money on a backyard oasis when other neighbors are sticking to modest landscapes, you might not get your money’s worth when it comes time to sell. Homeowners can consult real estate professionals in their area to learn about specific renovations that add value and appeal to buyers. They can also seek advice from financial planners to ensure they’re making the most cost-effective decisions when it comes to their remodeling goals.