Home improvement is the remodeling, altering or repairing of residential or non-com mercial property, such as installing fixtures, paint, carpeting and heating and air conditioning equipment. It also includes the construction of additions, porches, decks and landscaping.
A new kitchen, bathroom or roof can increase a home’s value and make it more appealing to potential buyers. However, before starting any major projects, it’s important to consult a professional. Getting a contractor’s opinion can save you time, money and headaches later. The contractor should be licensed and insured, and provide a detailed written contract that includes the project description, cost breakdowns, an estimated completion date and payment schedule. The contract should also specify any special requirements, such as types of materials or brands.
The most common home improvements include replacing worn out surfaces, such as countertops and cabinets, painting or staining surfaces and adding fixtures, like sinks and light fixtures. Creating a backyard oasis is another popular home improvement. A patio or deck is a great place for relaxing and entertaining, while a yard full of lush greenery can improve a home’s curb appeal.
According to a survey by NerdWallet, most homeowners (61%) say they’ve done home improvement projects in the past two years. Those projects cost an average of $6,438, including materials and labor. The reasons for these projects vary. For example, 36% of homeowners who took on these projects in 2020 did so because they spent more time at home during the pandemic’s social distancing measures.
Rock-bottom interest rates have made home improvement projects more attractive, especially for those looking to sell their homes in the near future. However, homeowners have been hesitant to spend much on major renovations. Spending on these projects is expected to decline in 2024, according to the Joint Center for Housing Studies of Harvard University.
One reason for this is that homeowners aren’t ready to swap their current sub-4% mortgages for higher rates that would come with buying a new house. In addition, a slowdown in the housing market means less demand for contractors and retailers that serve it.
A sluggish economy, rising construction costs and an oversupply of homes in the marketplace could all affect the pace at which home improvement spending picks up this year. However, many consumers expect to revisit their pricier plans as the economy improves.
Emmanuel Forge, a traveling contractor who posts DIY home-renovation advice on TikTok and Instagram under the Remodel School brand, says homeowners often underestimate how much a project will cost. As a result, some of them abandon their pricier plans.
It’s also important to remember that your home improvement projects should be in line with the neighborhood. For example, a pool in your backyard can decrease your home’s value if all of your neighbors have above-ground pools. It’s also a good idea to consider how your renovations will look when you’re ready to sell, so that you don’t make any changes that might turn off prospective buyers.