Home improvement is a term used for all sorts of projects that are designed to improve the function and aesthetics of a house. Often these projects involve the installation or repair of materials such as electrical, plumbing, and drywall.
Home improvements may be a great way to add value to your home. However, not all home renovations are created equal and some may actually negatively affect the resale value of your property.
When deciding what to do with your home, you should think about the potential buyer’s taste. For example, a family with young children might not appreciate a home recording studio or marble floors in the bathroom.
The resale value of your property is determined by the amount of equity you have in it and the market price of similar homes in your area. Taking on a large project without thinking about the market can negatively impact your property’s resale value.
A home improvement project should be completed by a licensed contractor or an aggregator that has been screened by the local jurisdiction for licensing and insurance. Typically these companies also pass a test on home improvement law and general business competency before they begin work.
Before a home improvement project is begun, it is essential that a contract be signed between the homeowner and the contractor. This should be a written agreement that clearly sets out the specifics of the project and the payment schedule.
Most of the time, homeowners pay for home improvement projects with cash. In some cases, a loan is taken out to cover the cost of a renovation or remodel. These types of loans usually come with interest rates that are extremely low.