Home improvement, also known as home renovation or remodeling, is the process of improving the interior and/or exterior of a house. This can include maintenance such as painting, repairing and replacing items; upgrading the home’s appliances, plumbing, electrical system or heating/cooling; and making cosmetic changes.
The home improvement industry includes the sale of building materials, furniture, fixtures and decorations used to improve a home, as well as services provided by contractors, tradespeople and others who help make improvements. The industry has seen excellent growth results over the last several years. However, recent economic challenges are expected to result in a slowdown of growth in 2023.
Remodeling projects can be costly, but they also increase a home’s resale value and curb appeal. However, it is important to understand what projects add the most value before you start. Generally, kitchen and bathroom upgrades are good investments, as are additions that expand living space, such as a finished basement or deck.
A homeowner should plan carefully before starting any major home improvements, and consider how the project will be financed. Personal loans, credit cards and home equity lines of credit are common sources of money for home improvement, but homeowners should consider the risks involved in using these options. A mortgage refinance is another option for financing large home improvement projects.
When selecting contractors for a home improvement project, it is important to obtain multiple estimates. Prices vary between companies, as do the quality of work and level of experience. Homeowners should choose a company with a good reputation, membership in a professional association and proof of insurance before hiring them for a job.
Homeowners should consider whether the improvements they want to make will add enough value to offset the cost, and consult a real estate appraiser for guidance. They should also update their home insurance to reflect any changes in value and ensure the coverage is adequate.
It’s also important to keep in mind that buyer preferences differ from market to market. If you want your home to sell quickly, focus on projects that are popular and valuable in your area. Finally, don’t forget to budget for unexpected expenses. A few hundred dollars for a new doorknob or a fresh coat of paint may not seem like much, but those little things can add up quickly.