Home improvement is an important way to maintain your property and increase its resale value. It can also be an effective way to make your home more comfortable and functional. Whether you’re looking for DIY inspiration or professional advice, we have the tips and tools to help make your next project a success.
In the past two years, American homeowners completed 135 million projects and spent $624 billion, according to the 2021 American Housing Survey. That represents a more than doubling of projects and spending over the previous decade. The reason? Inflation and uncertainty about a possible recession.
A major part of home improvement is determining what changes are worth the money. Some renovations, like fixing a leaky roof or replacing old carpet, are essential. Other improvements, such as adding a new bathroom or converting an attic into living space, are more of a luxury. Regardless of what type of work you’re planning, it’s crucial to set a budget and stick to it. And when it comes to paying for your home renovation, it’s important to explore all of your options for financing, from credit cards and unsecured loans to secured loans like HELOCs and second mortgages.
When it comes to deciding which parts of your home to remodel first, personal preferences play an important role. Maybe you’ve been dying to update your 1980s kitchen, or maybe that dusty carpet drives you crazy. But keep in mind that needs — like a leaky roof or sagging shingles — should always trump wants when it comes to prioritizing your home improvement list.
The coronavirus pandemic may have changed some homeowner attitudes about allowing contractors in their homes. More than half of those surveyed by NerdWallet in September 2020 say they’d be more cautious about letting repair professionals into their houses than usual, due to safety concerns over the virus. And if you are considering having workers in your home, it’s a good idea to communicate clearly about household safety measures (such as mask-wearing and cleanliness) ahead of time.
Once you’ve nailed down your remodeling plan and chosen a contractor, you’ll need to establish a payment schedule and discuss any project snags or unexpected costs upfront. It’s best to get a written contract for any work you have completed, including a timeline for completion and a description of the materials you’ll be using (including brand names). And don’t make any final payments until your project is complete and all required inspections and certificates of occupancy are finished.
Lastly, make sure to have homeowners insurance to cover any damage caused by workers while working on your property. It’s a smart investment that can help protect you from costly legal fees and other expenses in the event of an accident. If you don’t already have coverage, contact your insurance agent to learn about home renovation policies available in your area. You can find a licensed insurance agent in your community by entering your zip code here.