Home improvement refers to upgrades that improve the functionality and appearance of a home. This includes everything from a new bathroom to refinishing hardwood floors. Homeowners undertake these projects for a variety of reasons. Often they want to increase the resale value of their property, but other times they just want to make their house more comfortable. Whatever the motivation, homeowners should always consider a project’s return on investment before beginning work.
There are many ways to finance a home improvement project, including personal loans and credit cards, but homeowners should be careful not to put their homes at risk. Home equity loans and lines of credit can provide a lower interest rate and allow homeowners to borrow against the value of their home, but they should be used only for major projects that will add substantial value.
Regardless of the economic environment, homeowners continue to invest in their homes. In fact, according to the National Association of Realtors (NAR), homeowners reported greater satisfaction with their homes after renovations. The pandemic may have spurred some of this, but a number of reasons beyond the crisis drive home improvements.
It’s important for homeowners to take the time to compare quotes from contractors before starting a project and to price out materials, contractor fees, and permits. Using modeling and design tools can also help a homeowner plot out their project and create a budget that makes sense for them. In addition to these planning tools, it’s also wise for a homeowner to consider a safety buffer in the event that unexpected costs arise.