Home improvement is the act of improving or repairing the interior or exterior of a house. This can include renovations to bathrooms, kitchens and basements, as well as adding rooms or building an extension. It also includes the repair and maintenance of driveways, sidewalks and fences. Home improvements can be very costly, but they often provide a good return on investment.
Home ownership is a major part of the American Dream, and home improvement projects are a popular way to show your pride in your property and keep up with rising home values. While many of these projects are purely cosmetic, some will increase your home’s value enough to help you sell it. The most expensive projects, such as additions and kitchen or bathroom remodels, tend to yield the highest ROI.
Most homeowners fund their home improvement projects with cash from savings. However, for higher-dollar projects, sources such as cash-out refinancing, home equity loans or contractor arranged financing are common. Homeowners may also use credit cards or personal loans.
Nevertheless, you should never embark on a home improvement project without fully understanding the costs involved. It is advisable to seek professional advice before starting any work, particularly if it involves plumbing or electrical works. Doing so will ensure the job is done properly, safely and to your satisfaction. Also, it is a good idea to review your homeowner’s insurance policy regularly when undertaking any type of renovation. This is because the increased value of your home may make it necessary to upgrade your coverage.