Home improvement, or house renovation, is a huge industry that has seen excellent growth results in recent years. This includes the sale of building materials, appliances and decorations as well as the services offered by contractors and other workers.
Some home improvements are essential, such as fixing a leaky roof or replacing aging windows. Others are done for a specific reason, like creating a better backyard space for kids and pets or updating the kitchen to make it more functional. Still others are completed to increase the resale value of the property. However, it’s important to weigh the pros and cons of each project before deciding on one. This can help homeowners find the perfect balance between cost recovery and homeowner happiness.
While some projects do offer great returns, such as a sparkling bathroom overhaul or a basement remodel, other investments may not pay off in the long run. In fact, some improvements actually reduce the resale value of a property, including a sunroom addition or installing a high-end hot tub.
That’s why it’s so important to know the difference between a smart and a bad investment when it comes to home improvement. Before starting any renovations, consult with a real estate agent to discuss what projects will add the most value to your home and which ones are best avoided.
In addition to talking with a local realtor, it’s also a good idea to do some research on your own. For example, talk to other homeowners who have recently renovated their homes and see what their experiences were. This can give you an idea of the return on your investment as well as the average amount spent per renovation.
Once you have a clear understanding of the costs and benefits, you’re ready to start planning your project. Before hiring a contractor, ask about their experience and credentials. You should also request an estimate and a copy of their license. It’s important to choose a licensed contractor with an A+ rating from the Better Business Bureau. It’s also a good idea to find out whether they are insured and bonded.
Lastly, it’s important to stay within your budget and avoid going into debt. This is especially true if you plan to sell your home in the near future. Remember, you’ll have to pay back the money you borrowed plus interest.
Investing in home improvements is a great way to increase your property’s resale value and improve your quality of life. But don’t forget about the joy you can get from a beautifully landscaped yard, an updated kitchen or a comfortable master suite. After all, no numerical value can capture the happiness that a new home improvement brings! If you’re in the market to upgrade your home, apply online today for a cash-out refinance. We’d love to help!