Home Improvement Factors to Consider

Home improvement is a term used to describe any renovation or remodeling project that enhances a home. These projects can include anything from re-grouting tile to adding a new roof. However, it’s important to note that not all home improvements will increase your home’s resale value. Some projects may actually cost you money in the long run, so it’s important to consider your budget and lifestyle before embarking on a big home improvement project.

Whether it’s improving the look of your home or making it more energy-efficient, most homeowners will engage in some form of home improvement at some point during their time as owners. In fact, according to Remodeling Magazine, Americans spend an average of $522 billion on home improvement projects each year, which is more than double the amount spent in 2007. The top home improvement projects that add the most to a home’s resale value are sparkling bathroom overhauls and kitchen remodels. Other popular home improvement projects include a deck or patio addition and installing a high-efficiency heating, ventilation and air conditioning system (HVAC).

One of the biggest factors to consider when planning any type of home improvement is how it will affect your property tax bill. Homeowners are often surprised to find out that a new paint job or upgraded flooring can significantly increase their property tax bill. This is why it’s important to plan ahead and get estimates from multiple contractors before starting any project.

Depending on the state, homeowners can also be charged a sales tax on the home improvement services they hire. While this isn’t always the case, it’s important to ask your contractor if they are required to collect sales tax and to verify their license number before hiring them. Those who live in Maryland, for example, are required to have their contractor’s name, address and MHIC license number preprinted on the contract.

Another factor to consider is the coronavirus pandemic and how it may affect the ability of homeowners to hire and work with contractors on home improvement projects. According to the NerdWallet survey, more than half of respondents said they would be less likely to allow a contractor into their home due to safety concerns related to the pandemic.

It’s also worth remembering that while there are plenty of benefits to renovating your home, the primary reason to do so should be for your own comfort and enjoyment. If you’re renovating solely based on the potential impact it could have on your resale value down the road, you might end up with a showplace that doesn’t feel like a home. Fortunately, there are many affordable ways to improve your home without dipping into savings or going into debt. Painting, re-grouting tile and power washing the outside of your house are just a few examples of low cost, high value home improvement projects that can add real curb appeal. Besides being beautiful, these upgrades can help to ensure that your home is safe and healthy for you and your family.

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