Home improvement refers to the repairing, remodeling, altering, renovating, restoring, or modernizing of residential real property. Improvements include adding, enlarging, or changing the exterior of the building; modifying the interior or structure of the building; and the installation of a new roof, paving, driveway, sidewalk, fence, and landscaping. Home improvement also includes the replacement or repair of a roof, windows, doors, and other structural components of the dwelling, as well as the addition of a deck, porch, patio, garage, or basement.
Many homeowners spend money on home improvements in hopes of boosting their resale value. But not all projects have the same return on investment. In fact, some homeowners may not even get their money’s worth when it comes time to sell.
The most popular home improvement projects include sparkling bathroom overhauls and kitchen renovations. However, a homeowner is likely to get only about a 60% return on their investment on these projects, according to data from Zonda Media.
To make sure you’re getting your money’s worth, talk to a local realtor about what specific upgrades will add the most value in your area. Then, choose midrange options instead of high-end finishes. This will help you stay within your budget and avoid going into debt or running up your credit card balances.
Homeowners often have to finance their home improvement projects, and there are a variety of options available. One option is a home equity loan, which allows you to borrow against the equity in your house and repay it over a 5-30 year period via fixed monthly payments. Home equity loans can be used to pay for anything from home improvement projects to debt consolidation or long-term medical care.
Another home improvement financing option is a line of credit. This type of line of credit allows you to draw funds on an as-needed basis, so you can pay for home repairs or other expenses without incurring a huge interest charge. It’s important to compare the terms of these financing options to determine which is right for you.
When it comes to paying for home improvement projects, you should always check to see whether the contractor is required by law to have a license. A licensed contractor is typically bonded, insured, and must pass a background check. They should also have a clean record with the Better Business Bureau.
A contract for home improvement should clearly state the name of the contractor; a description of the work to be performed; the total price of the project; payment terms, including deposit requirements; and any warranties for materials and workmanship. The contract must also contain a mandatory arbitration clause.
If you’re considering a major home improvement project, it’s best to get a quote from several contractors before selecting one. By taking the time to do this, you’ll be able to find the most competitive rates and ensure that your project is completed on schedule. You’ll also be able to save money by not over-spending on materials that don’t add value to your home.