Home improvement is the process of remodeling or making additions to a home. These projects can include renovating existing rooms, adding or modifying the exterior of the house and gardening work. These projects are undertaken for a variety of reasons; personal preference and comfort, cost savings, or to make a home more marketable. A major home improvement project can significantly increase the value of a property or change the way it is used, but only if the right steps are taken to prepare for the work and to choose the best contractors.
Whether you are planning to stay in your home for years or plan to sell soon, home improvements that increase the value of your property should be a top priority. However, many homeowners end up spending a fortune on high-end materials and hiring a professional contractor that may not have their best interests at heart. It is important to plan a budget and stick with it throughout the renovation process. It is also a good idea to consult with other people that have recently gone through the renovation process to learn from their mistakes and successes.
A full home renovation is typically the most expensive type of home improvement, but it can also add the greatest amount of value to a property. A kitchen remodel, for example, can recoup about 75 percent of the cost in added sales price. The same is true for bathroom and bedroom remodeling. Other large-scale projects that have been known to significantly increase a home’s sale price include upgrading electrical wiring and fixtures, installing new windows and doors, adding a deck or patio and replacing the roof.
When preparing to renovate, it is important to know the local building codes and permit requirements. It is also helpful to establish a written contract with a reputable and insured contractor. The contract should detail the timeline for completion of the work, a payment schedule and include specifics about the material being used, such as brand names and types. The contract should also specify any warranties that the contractor offers and whether or not the work is guaranteed.
If you have the time and inclination, some home improvement projects can be done on a do-it-yourself basis. Painting, re-grouting tile and power washing the outside of the house are all low-cost upgrades that can really enhance a property’s curb appeal. Other DIY projects that are easy to complete and can add a great deal of value to your property include updating the lighting and adding a fresh coat of paint to the garage or shed.
For projects that are too large to handle yourself, a home equity loan may be an option. These loans are usually structured as installment loans repaid over 5-30 years with fixed monthly payments. In order to qualify, you must have a significant amount of equity in your home. Depending on your situation, you may be able to borrow up to 85% of the estimated value of your home.