Home improvement includes work on your home that is intended to increase the value of your property or enhance the functionality of your home. Improvements can range from a minor remodeling project to a major rehab of your entire house.
There are a number of factors to consider before starting a home improvement project. Your home’s value can be negatively affected if you don’t plan your project wisely. It’s also wise to look into obtaining a loan for your project, which can come in the form of a personal loan or federally approved home improvement loan. The interest rates and repayment periods for these loans can vary. If you have good credit, you may be eligible for a personal loan. However, be careful and don’t sign on the dotted line for a loan that doesn’t offer enough time to pay off the loan in full.
Many homeowners have a plan to remodel or add on to their homes in the coming years. In fact, the Harvard Joint Center for Housing Studies estimates that home remodeling will spike at the beginning of the year.
While a new front door or backyard paradise may seem like a good idea, they won’t significantly boost your property’s value. For instance, potential buyers won’t be willing to shell out for marble floors in your bathroom. Instead, you can add a touch of color to your exterior with landscaping.
Whether you’re a do-it-yourselfer or prefer hiring out your renovations, make sure you research and find a reliable contractor. Some states have enacted licensing laws that make it illegal to carry out any home improvement work without a license. Additionally, you could face a fine of $500 to $5,000.
According to Axiom, the largest segment of consumers who are making home improvements is working on the outside of their houses. Specifically, a survey by the marketing firm found that nearly three out of four respondents were planning to work on the deck, porch or outdoor area. Similarly, about one in five respondents were planning to work on their kitchen or bathroom.
The Axiom survey was designed to determine what consumers are most likely to accomplish during their home improvement projects. Although many of the respondents were not planning the most complicated projects, most were looking to do something that would improve their quality of life.
The biggest home improvement trend is that more homeowners are choosing to make smaller upgrades than they were a few years ago. This trend is attributed to increased affordability. Moreover, a recent survey by Zillow found that 72% of homeowners are planning to do a home project sometime in 2022.
Having a project in your home can be a comforting investment during times of uncertainty. If your project will benefit your family and overall quality of life, you’ll be glad you invested in it. But don’t spend money on upgrades that don’t increase the value of your home. You might want to keep upgrades on par with those of your neighbors.