Home improvement is the process of making changes to your home to improve its appearance, function or value. It can be as simple as replacing a faucet set or a new door handle, or it can involve a major overhaul like adding an addition to your house. The key is to make the improvements you want to see in your home, while staying within your budget.
Homeowners are more likely to take on renovation projects now than ever before. A recent NerdWallet survey found that 23% of homeowners plan to do some kind of home improvement project this year, up from 14% who planned such projects in 2020. In addition, more than half of the homeowners surveyed (54%) said they are planning to make their home more comfortable or more satisfied.
The cost of home renovations has gone up dramatically since the recession. That means that even modest upgrades can be quite costly. For some homeowners, the only way to pay for them is by tapping into their savings or going into debt.
For many, that means taking out a mortgage to cover the costs of renovating. This is not always an ideal solution, however. If you don’t have a good credit history or don’t have a significant amount of equity in your home, a mortgage might not be the best option for you.
It’s also important to consider the return on investment that you can expect from any home improvement. The average home improvement project can add about 70% to your home’s value, according to the RenoFi home remodeling loan platform.
Some home improvements may actually reduce your home’s value, however. If you’re trying to resell your home, it’s best to avoid any work that doesn’t increase its value.
Invest in projects that will add to your home’s aesthetic appeal, such as painting or landscaping. Changing the paint color, or installing new landscaping, is an easy way to make your house more beautiful and more appealing to buyers.
If you’re not sure what kinds of home improvements will add the most value to your property, consult with a real estate agent or contractor. Then, focus on completing the most cost-effective projects that will boost your home’s value.
When hiring a contractor to do home improvements, always get a written contract outlining the exact scope of work and payment schedule. Getting a contract signed and accepted by both parties will help protect you from any potential surprises later on.
In most cases, contractors will be able to provide you with bids that include different prices for the same home improvement job. This is because contractors will vary in experience, expertise and how well they complete a project on time.
A written contract should specify all of the details, including the type of materials to be used and their quality. It should also include terms and conditions related to warranties.
The contract should be completed in a professional manner and should be signed by both parties. It should also include the name and address of the company and the MHIC license number, as required by Maryland law.