Home improvement, also known as home renovation or house remodeling, is the process of upgrading or altering the interior or exterior of a building. Home improvement projects can be done for a variety of reasons, including improving comfort, increasing efficiency, changing the appearance or adding functionality. Home improvements can be expensive, but they often pay for themselves by increasing the resale value of a property.
According to the NerdWallet study, about 95 percent of homeowners are planning some sort of home improvement project in 2022. Most are thinking about smaller projects such as painting rooms and updating light fixtures, but some are considering more significant home renovations. The most popular of these include adding an extra room, such as a bedroom or bathroom, and renovating the kitchen. Other popular home improvements include replacing windows and doors, installing a security system, and making energy-efficient upgrades.
When it comes to choosing a contractor for a home improvement project, it is important to select a reputable professional. Performing due diligence, such as verifying licensing and insurance, checking references, and requesting examples of previous work is a good way to avoid hiring an untrustworthy professional. Additionally, a contract should be in place that clearly states the scope of work and includes an estimate of how long the job will take and payment schedule. It should also specify the types and brands of materials to be used in the project.
There are times when a home improvement project simply cannot be put off. For example, if the roof springs a leak or the heating and air conditioning system breaks down, these problems need to be addressed immediately to prevent further damage to the home and protect the health and safety of the family. In such situations, a home equity loan or line of credit can be an excellent option to finance these emergency repairs.
In the adolescent years of the COVID-19 pandemic, there was a boom in DIY home improvement and construction projects. This trend continued even as people were forced to stay at home during social distancing restrictions, but the numbers dwindled once people started going back to work and construction jobs began to resume.
Many homeowners are taking advantage of rock-bottom interest rates to finance their home improvement projects. But if you’re planning a major remodel, be careful not to overspend. Many whole-house remodels end up costing more than they add to the value of the home. And, unfortunately, more than half of homeowners who took on big-ticket home improvement projects in the last two years say they were able to afford the majority of them only by tapping into savings or going into debt.
Return on investment (ROI) is a key consideration when it comes to investing in a home improvement project. However, ROI figures vary significantly depending on the type of project and its location. Generally, projects that improve a home’s function will provide the greatest ROI. For example, an upgrade to the kitchen or bathroom will increase both a home’s functionality and its value.