Home improvement is the process of improving the interior or exterior of a dwelling, including the maintenance and repair of its structure and fixtures. It also includes the addition of new rooms or the modification of existing ones. This industry includes the sale of building materials, appliances and decor, as well as the contracting services of workers to perform home repairs and improvements.
Adding value to your home through home improvement can be an excellent way to increase your return on investment (ROI) when it comes time to sell. However, not all home improvement projects produce the same ROI, so it’s important to do your research before investing in any type of renovation.
According to a recent NerdWallet survey, homeowners who spend the most on home improvement projects are those in the highest income brackets. These individuals account for about a fourth of all US homeowners, yet they drive 45 percent of the market’s total spending on home improvement. They are more likely to have a lot of equity in their homes, and they are more willing to take out a loan to finance the renovations.
Many people find themselves in the position of needing to make home improvements because of a change in circumstances or because they simply want to improve their living space. Others make home improvements for resale purposes, hoping to increase the chances of selling their home quickly and for a good price. In either case, it’s wise to consult a real estate professional before undertaking any large-scale renovation projects. They can provide valuable information about what types of upgrades will add the most value to your home, and they can help you avoid making expensive mistakes that could detract from your home’s resale value.
The most common home improvement project is replacing old or damaged doors and windows, which can improve security and reduce energy costs. Other popular projects include installing a smart thermostat, upgrading kitchen appliances and adding attic insulation. These projects can be relatively inexpensive, but they can significantly increase a home’s energy efficiency and value.
While some homeowners may choose to do their own home improvement projects, most choose to hire contractors. These professionals can handle all aspects of a remodeling project, from the design phase to construction and installation. They can also assist with finding materials, obtaining permits and handling other details. Homeowners should always research potential contractors thoroughly before hiring them, checking references and licenses. It’s also a good idea to get estimates from more than one contractor before making a decision.
Depending on the size of the project, homeowners can choose from a wide range of financing options. The most popular choice is cash from savings, but higher-dollar projects are often financed with sources like home equity loans, cash-out refinancing and contractor arranged financing. Credit cards are another option for funding home improvements, but they should only be used for projects that can be paid off in a reasonable amount of time.