Home improvement is a multibillion dollar industry, and one that has seen strong growth results in recent years. This sector includes companies that manufacture and sell building materials, appliances, and home décor, as well as those that provide installation, renovation, or repair services.
When homeowners renovate, they hope that the improvements will boost their home’s resale value. However, the truth is that some projects will have a much greater impact than others on resale. While resale value is important, it’s also essential to consider how comfortable and enjoyable the home will be for the homeowner.
While many of us dream of a luxurious bathroom or a gorgeous kitchen, it’s essential to think carefully about the costs and benefits of any renovation. Choosing high-end finishes and materials can quickly add up, especially if the project is large or complicated. To avoid overspending, it’s important to make a plan before getting started and budget for any unexpected expenses that may arise.
Homeowners should also look into financing options for their home improvements. There are a number of ways that homeowners can finance their projects, such as personal loans or credit cards. Another option is to obtain a home renovation loan, which is a secured loan backed by the equity in the home. This type of loan has lower interest rates than unsecured loans and can be paid back over a fixed period of time.
Depending on the project and the amount involved, some contractors will require a deposit before beginning work. This is usually less than 1/3 of the total contract price. Homeowners should ensure that any deposit or payments made to contractors are clearly outlined in the contract.
While home renovations can be expensive, many people are able to pay for them without tapping into their savings or going into debt. According to a NerdWallet survey, 75% of homeowners who have done projects in the past two years were “easily able to afford the majority of them without tapping into their savings or going into any kind of debt.”
While it is tempting to upgrade to the latest and greatest in home décor, homeowners should be mindful of how they’re spending money. Even though a high-end bathroom might be more aesthetically pleasing, buyers will probably be put off by the cost. Instead, choose midrange upgrades that will appeal to a wider range of buyers. This will help the homeowner save money in the long run and still enjoy their home improvements.