Home improvement is the renovation, restoration or modification of residential real property such as improving the interior or exterior of the home. Examples include painting, repairing or replacing floors, adding new rooms and upgrading the home’s heating, ventilation and air conditioning systems. Home improvements can also include installing a swimming pool, adding an outdoor kitchen or converting a garage into living space. Other common projects include paving the driveway, refinishing wooden floors, putting on a fresh coat of paint or replacing the roof.
Aside from curb appeal, many homeowners make home improvement projects in order to increase the resale value of their property. However, these projects may not always pay off when it comes time to sell. According to Remodeling magazine’s Cost vs. Value report, some of the most popular home improvements do not provide a return on investment, such as adding a swimming pool or a new kitchen.
To help you decide which home improvement projects are worthwhile, talk to a realtor in your area. They can give you ideas about specific renovations that will add value to your home and which ones are best to skip, says Sophia Bera Daigle, CEO of Gen Y Planning, an Austin, Texas-based financial planning firm for millennials.
Homeowners should be careful when hiring contractors to perform home improvement work. They should check whether the contractor is licensed and insured, and look for membership in a trade organization or accreditation from a professional body. It is also important to consider whether a contract contains a mandatory arbitration clause. The contract should also specify the date when the performance of the home improvement will start and when it will be substantially completed. It should also contain the deposit and payment terms agreed between the parties.