Home improvement refers to a wide range of activities undertaken to improve the value, efficiency, or comfort of residential buildings. It includes repairs, renovations, alterations, additions, conversions and other changes to existing structures. It also includes the installation of appliances, fixtures and finishes. The term may also be applied to commercial buildings such as hotels and restaurants.
The National Association of Home Builders reports that the most common home improvements are replacing windows, adding a deck, painting rooms, and upgrading kitchens and bathrooms. However, it’s important to note that not all projects will increase the value of a home. Home improvement contractors should be able to provide advice about what projects will yield the greatest return on investment.
One mistake homeowners make is overspending on home improvement projects. This often occurs when homeowners choose materials that exceed the cost of comparable options. In the end, the project costs more than intended and could result in debt. It’s also a good idea to consider the potential impact on future resale value before beginning a project. A homeowner may want to improve his or her home in order to get the most out of it when it comes time to sell, but he or she should speak with a real estate agent to determine whether certain upgrades will add or detract from the value of the property.
After a pandemic-era craze that saw homeowners upgrading their homes as they spent more time at home due to Covid lockdowns, home improvement spending has been cooling off for months. Lowe’s and Home Depot report that shoppers are increasingly putting off pricier projects, such as tub-to-shower conversions, in favor of cheaper do-it-yourself fixes. But some remodeling experts expect householders to revisit their pricier plans later this year as the economy picks up steam.
Homeowners who are planning home improvement projects may be able to borrow money to pay for their projects. There are two main types of home renovation loans: a mortgage or a home equity loan. A mortgage is secured by the house itself, and is repaid over a set period of time. A home equity loan is a line of credit backed by the homeowner’s equity in the residence, and is repaid over a flexible period of time.
Regardless of the type of loan, it is recommended that homeowners budget carefully for their project’s scope and timeline. It’s also a good idea for homeowners to establish an agreement with a contractor before starting work. This should include a payment schedule and a detailed description of the work to be completed. It should also specify the types and brands of all materials to be used. This will help to ensure that the final bill is in line with expectations. A signed contract can also protect the homeowner from soaring costs down the road. By following these tips, homeowners can avoid overspending on their home improvement projects and minimize the likelihood of going into debt during the process.