Home improvement refers to any renovation or remodeling work that enhances the value of your home. Home improvements can include painting, resurfacing your driveway or sidewalks, installing a deck or porch, a swimming pool, and any other addition or expansion of your home. Home improvement projects can also add features such as lighting, air conditioning and security systems. When considering a home improvement project it is best to speak with a real estate agent in your area to see what types of renovations will add the most value to your home.
The most popular home improvement projects are bathroom renovations and kitchen remodels. Other popular renovations are adding additional bedrooms and bathrooms, putting in new flooring, laying new tile and replacing old appliances. These projects are not only great for enhancing the beauty of your home, but they can also increase the resale value of your property.
According to the American Housing Survey, most homeowner-occupied households completed at least one home improvement project during the past two years. Those improvements were worth an average of $3,890. Despite this significant investment, the majority of homeowners say they were able to pay for the projects without having to tap into savings or go into debt.
While it is easy to become inspired by HGTV shows such as Fixer Upper and This Old House, it is important to keep in mind that not all home improvements will add value to your property. Some will actually decrease the resale value of your home, so it is important to consult with a realtor in your area to find out what projects are likely to be worthwhile and which ones should be avoided.
Home improvement spending hit a record high in 2017, but is projected to decline in 2023. Rising labor costs and supply chain issues are to blame for the decline, along with stalled home sales and mortgage refinancing activity.
The most common ways to fund home improvement projects are through cash from savings, cash-out refinancing, and credit cards. Other popular methods for funding home improvement projects include home equity loans and contractor-arranged financing.
Depending on the state in which you live, it is possible to be charged a sales tax on certain home improvement services. For example, painting a room or resurfacing your driveway would both be considered home improvements and may require the payment of a sales tax to the person who is performing those services.
When it comes to hiring a contractor for a home improvement project, make sure to check their credentials and references. It is also important to get a written contract before any money is exchanged. This contract should include the name and address of the contractor, a description of the work to be performed, a detailed payment schedule and a mandatory arbitration clause. The contract should be signed by both the consumer and contractor. Avoid any contractors who refuse to provide you with a contract. You can also protect yourself by checking the MHIC registry to ensure that they are licensed.