Home improvement is a major part of homeownership. Many people choose to improve their home for several reasons, including adding value to their property, increasing enjoyment and comfort, or making it more suitable for their family. Whatever the reason, a well-planned and executed home improvement project can yield significant returns.
A recent study found that homeowners age 55 and older are driving home improvement spending, with an estimated increase of 50 percent from 2010 to 2023. This increase in home renovation activity is due to a decline in new construction and a desire for owners of this group to personalize their homes.
In a volatile economy, homeowners may be looking for ways to add value to their properties. The good news is that home improvements have a high return on investment, often providing up to 70 percent of the cost of the project, according to the home remodeling loans platform RenoFi.
But not all home improvement projects are created equal. It is important to understand what types of projects will provide the best return on investment, and which ones should be avoided. For example, a luxury master bathroom remodel won’t necessarily translate into a higher price point when it comes time to sell. Sticking to midrange upgrades that appeal to the majority of buyers is usually a better choice.
Some projects that can be done on a DIY basis also offer an attractive return on investment. For example, painting is an inexpensive way to give your house a fresh new look, and it can significantly boost its value. The key to choosing the right paint is ensuring that it is neutral, so it will appeal to a broad range of potential buyers.
If you’re planning a large-scale home improvement project, it is essential to shop around and get multiple estimates from contractors. Keep in mind that prices vary, but you should also consider factors such as the contractor’s reputation, experience, and ability to complete the work on schedule.
A contract for a home improvement should include a description of the work to be performed, the materials to be used, and the costs of the project. It should also contain the approximate dates when the work will begin and be substantially completed. In addition, the contract should list any warranties that are included with the work and any additional terms and conditions that the parties may lawfully agree to.
Many homeowners are concerned about the costs of home improvement, but there are a number of options available to help make projects more affordable. For example, a credit card can be a great option for financing smaller upgrades, such as a kitchen paint job or new appliances. And many companies offer 0% interest for a year or more, which can really cut down on the total cost of the project. Personal loans are another alternative that can be a good fit for larger projects. However, it’s important to understand the differences between a personal loan and a line of credit before choosing one.