Home improvement is any repair, remodeling or renovation that improves the condition of a residential or non-commercial building. It includes additions, repairs, improvements or replacement of fixtures and finishes, such as wallpaper, carpeting, drapes, paint, window treatments, furniture and appliances. It also includes landscaping and yard work. Home improvement projects can be as small as re-grouting tile or as large as adding an extra bedroom.
Many homeowners renovate with resale in mind, but some projects don’t pay off when it comes time to sell. If you’re considering a project, talk to a real estate agent about what kind of return you can expect on your investment.
Generally, the more expensive the improvement, the higher the potential ROI. But there are some upgrades that can add value without draining your savings account:
When it comes to financing home improvement projects, most homeowners rely on cash from savings to cover the cost, according to our September survey. But many more turn to other options, including credit cards, mortgage refinancing, home equity loans and contractor arranged financing. One important thing to remember is that your contract should spell out all payment terms and include any warranties that may apply for materials and workmanship. Maryland’s Home Improvement Law requires that a written contract is signed before any work begins or money is paid. The contract should have the contractor’s name, address and MHIC license number preprinted. A copy of the contract should be kept at your house.