Home improvement is a broad term that encompasses any renovation, upgrade, or addition to a property. It includes but is not limited to painting, resurfacing the pavement and driveway, installing a deck or gazebo, and many other projects that increase the value of a house. Home improvements can be a great way to add value to your home, but you should consider your options carefully before taking on such a large project. You should also have a budget in place before considering this type of funding.
Often homeowners undertake home improvements hoping that the renovation will boost their resale value. However, not all upgrades are created equal, and some may actually decrease resale value. For example, a luxury bathroom remodel may be over-personalized and off-putting to potential buyers. Instead, opt for upgrades that are neutral and appeal to a wide range of tastes.
In addition, many homeowners use home equity loans to fund their home improvement projects. Home equity loans are installment loans repaid over 5-30 years via fixed monthly payments, and the amount borrowed is based on your total home equity. Home equity loans are a great option for financing your home improvement project, but you should be aware of the potential drawbacks and penalties that come with these types of financing.
Finally, some states require home improvement contractors to be licensed in order to provide service. In New York State, for instance, a contractor is required to be licensed in the counties of New York City, Suffolk, Nassau, Westchester, Putnam, Rockland, and Bergen. Besides being licensed, a contractor should have proof of workers’ compensation and general liability insurance.