Home improvement is a popular hobby. Many of us are familiar with TV shows such as Fixer Upper and This Old House, and there is plenty of information online about how to do home renovations.
But while home improvements can be fun, they can also be expensive. A recent NerdWallet survey found that 20% of homeowners who took on projects during the past two years said they had to make sacrifices or go into debt to pay for them. And the average cost of a project was $4,838, meaning most homeowners did not have deep wells of cash to draw from.
The reasons for this are complicated. The home improvement industry is tied to the housing market, and that’s been affected by stalling home sales and soaring mortgage interest rates. But despite the challenges, most homeowners still want to improve their homes. That’s why it’s important to be aware of what’s driving home renovation aspirations, as well as the projects that are a good fit for your needs and budget.
One reason why a homeowner might choose to renovate is to improve the home’s resale value. This can be a good idea, but only if the renovations are done well and add more value than they cost. And if you’re planning to sell your home in the near future, it might be better to focus on the most common and popular improvements that appeal to buyers.
According to NerdWallet, the most popular home improvement projects are kitchen renovations and bathroom remodels. These types of projects often provide a high return on investment, and can greatly enhance the home’s functionality. However, there are other types of projects that can increase the home’s value as well. Adding a deck or fence, for example, can add outdoor living space and boost the curb appeal of the home. It can even add a small amount of privacy, which can be beneficial for families with young children.
Other common home improvement projects include putting in new floors, updating the kitchen appliances, and installing security systems. These projects can be more cost-effective than a full kitchen or bathroom renovation, but they can still have a significant impact on the overall look and feel of the home.
Regardless of which type of home improvement you’re planning, it’s important to do your research and find a contractor with a strong track record and good business practices. It’s also a good idea to get a contract with a clear payment schedule and as many specifics as possible about the work being done. That includes details about what materials will be used and how much they will cost.
It’s also a good idea to consider whether you need a loan for the project, and how much it will cost in terms of a monthly payment. If you do need a loan, it’s a good idea to shop around and compare lenders to find the best deal. It might also be a good idea to consult with a financial planner or certified financial counselor before you begin your renovation project. They can help you develop a plan for paying back your loan, as well as answer any other questions that may arise along the way.