There are certainties in life: death, taxes and if you’re a homeowner, home repair and improvement projects. Whether you have a leaky roof or simply want to add a little more room, home improvements can be costly. But it’s important to remember that not all projects are created equal. Some are a waste of money, while others can yield solid returns.
In a NerdWallet survey conducted in September, 76% of homeowners reported having funds set aside for home improvement projects. In addition, 80% said they usually stick to their budget. This is good news considering that the typical homeowner spends $522 on home repairs and improvements over a two-year period, according to the latest data from the U.S. Census Bureau’s American Housing Survey (AHS).
Whether you’re looking to increase the functionality of your space, improve its curb appeal or both, it’s important to keep your goals in mind when choosing which home improvement projects to take on. The best upgrades can make your home a better fit for your family while also adding value.
Some popular home improvement projects include a master suite, extra bedrooms and bathrooms, kitchen remodels, adding a deck or patio and finishing the basement. Other projects that can have a significant impact on your home’s resale value include replacing your old windows, energy-efficient upgrades and exterior paint.
The return on investment from home improvement projects can vary widely and is highly dependent on the type of project, materials and workmanship, as well as the location and price point of your property. In general, the highest-value projects are those that can appeal to the broadest range of potential buyers.
However, it’s important to keep in mind that the higher the cost of the project, the less likely it is that you will recoup your investment. In many cases, you may not even come close to breaking even.
When selecting a contractor for your next home improvement project, consider their reputation and experience. You can find out more about a contractor’s background by contacting local real estate agents and checking their online reviews. Additionally, Maryland’s Home Improvement Law requires that a contract be written and signed before work begins and any money is paid. The contract should also contain a clear description of the work, the cost and payment terms as well as warranties and guarantees provided by the contractor. Be sure to ask a contractor for their name, address and MHIC license number before signing any contract. The number can be obtained by calling 1-800-435-7352. In addition to the MHIC licensing requirement, the contractor should provide the consumer with a copy of their written contract before any work is performed. This includes all written estimates and quotations. The contract must be signed by both the homeowner and contractor to be valid. There are penalties for violating this law.