Home improvement refers to the repairing, remodeling, altering, and improving of residential property. Examples include, but are not limited to: painting, resurfacing of driveways and sidewalks, refinishing woodwork, adding electrical wiring and cabinets, installing new flooring, building structures such as decks and gazebos, and paving. Home improvements may also be made to increase the energy efficiency of a house. Some home improvements are considered capital in nature and, therefore, can be added to the cost basis of a property or subtracted from its sales price when the owner sells it. Other home improvements may yield tax credits at the time they are made.
There are certain things in life that are unavoidable: death, taxes and if you’re a homeowner, home repair and remodeling projects. Some are planned, while others come in the form of a leaky roof or can’t-wait tasks like replacing carpeting.
In 2021, 24.5 million homeowners completed at least one home improvement project. Most are focused on upgrading bathrooms and kitchens, but a small percentage is hiring professionals to spruce up their electrical systems or cabinets.
Homeowners are encouraged to carefully select contractors for their home improvement projects and not make decisions based solely on price. Contractors vary significantly in quality of work, reputation, business practices and ability to complete a job on time – or even at all. Before choosing a contractor, be sure to ask for referrals and check their licensing credentials. It is also recommended that consumers avoid using aggregators for their home improvement needs as they do not fully screen and qualify service providers.