Home improvement, also known as home renovation or remodeling, is the process of improving or upgrading the interior and exterior of a house. This includes everything from painting and carpeting to adding trim and building a deck. Home improvements are generally carried out for a variety of reasons, including increasing the comfort of a living space, resale value or to make it more energy-efficient.
The home improvement industry has enjoyed excellent growth results in recent years. It encompasses the sale of building materials, appliances, decor and other home enhancements as well as the labor and services of contractors and tradespeople who carry out home improvement projects. The home improvement market also includes rental property maintenance and repair, as well as landscaping.
One of the most popular types of home improvement projects is adding or replacing kitchen appliances. This is a relatively inexpensive project that can have a big impact on the appearance of a kitchen. Other popular projects include upgrading bathroom fixtures and refinishing hardwood floors. New light fixtures are another easy and cost effective way to update a room. They can instantly transform a drab dining room or bedroom into something more modern and appealing.
Some types of home improvements can have tax benefits. The cost of certain capital improvements may be deductible as a medical expense on your tax return, and some energy-saving improvements can qualify for tax credits. However, the definition of a qualified capital improvement can be vague, so it is important to consult a tax professional before making any expensive investments.
It is recommended that you have a written contract before any work starts on your home improvement project. The contract should clearly state the total price of the project and a deposit amount not to exceed 1/3 of the contract price. The contractor must also provide a copy of their MHIC license number, which is preprinted on the contract. In addition, the contract should contain an arbitration clause and a disclosure that the parties may submit claims to the Maryland Home Improvement Guaranty Fund.
A good home improvement contractor should be able to explain in detail the work that is going to be performed and provide you with a copy of any necessary permits. They should also have copies of any relevant insurance policies. In addition, they should provide you with a list of references from past customers and a sample scope of work agreement.
Although it is always a good idea to improve your home, you should be cautious about undertaking any projects that are likely to reduce the resale value of your property. For example, a swimming pool may be a major turnoff for potential buyers. You should also be wary of undertaking any project that requires a large investment and will take time to complete. Fortunately, there are many low-cost projects that can add significant value to your home. These include painting, re-grouting tile and power washing the outside of your home.