Home Improvement Considerations

Home improvement is the process of renovating or making additions to one’s home. This includes both interior and exterior work. It can be done for a variety of reasons including: personal preference, improving comfort, repairing damage, increasing energy efficiency or to increase the value of the property. Home renovations can be very complex projects. They are also often more expensive than expected. Home improvements can also result in additional expenses such as materials, labor, permitting fees and insurance. This can be particularly true of high-end projects such as adding a swimming pool or installing an outdoor kitchen.

According to the National Association of Home Builders, remodeling can add up to 20% to a home’s value. However, not all renovations will add value to a property. It is important to do your research and choose the right projects for your home.

It is also important to consider your home’s location when doing any type of home improvement. For example, adding a deck or patio may not add much value to your home if it is located in a neighborhood where most other homes have them. Likewise, a backyard hot tub or fountain might not appeal to future buyers if the majority of your neighbors have more modest yards.

A new study by Zonda, a real estate analytics firm, found that homeowners are spending more on home improvements than they are getting back in terms of resale value. In fact, the median remodeling project yielded just a 2.1% return on investment. But, smaller projects such as painting and replacing a backsplash did provide high returns.

Homeowners should also be mindful of how their home improvements might impact their tax bill. Home improvements are considered personal property, meaning that they are subject to state and local sales taxes, as well as property and personal income taxes. Many states require that contractors and other professionals working on a home improvement project submit a sales tax receipt.

Many people opt to finance their home improvements by taking out a loan. This is an option that should be carefully considered because the interest on a loan can add up quickly and offset any gains from the renovation. It is also a good idea to get estimates from multiple contractors before choosing a company to work on your home.

In addition to considering the financial aspects of a home improvement project, it’s important to make sure that you are aware of any safety concerns when having contractors in your house during the coronavirus pandemic. For instance, more than half of homeowners in a September NerdWallet survey said they wouldn’t allow contractors into their homes due to concerns about the coronavirus. It’s important to communicate these issues to the contractor before starting any work. This will help to alleviate any stress that may arise during the project. It will also help to keep everyone safe and comfortable.

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