Home improvement is the repair, maintenance or restoration of residential real property. It includes the installation of fixtures, furnishings and equipment like sinks, toilets, light bulbs and flooring. It also includes landscaping and building structures such as garages, fences and decks. Home improvements can be as simple as refreshing shower areas or as complicated as adding a new kitchen or bathroom. Many homeowners undertake home improvement projects to increase the comfort and beauty of their living spaces. Other reasons for home remodeling include fixing a safety issue or increasing the energy efficiency of the house.
The pandemic has led to more time spent at home, and many homeowners have used this opportunity to upgrade their living space. About 3 in 5 Americans who took on home improvements during the pandemic reported that they felt a sense of satisfaction with their finished renovation, according to a NerdWallet survey.
A variety of financing options are available for home improvement projects. The most common source of funds is cash from savings, but more expensive projects are paid for by a combination of sources including cash-out refinancing, home equity loans and contractor arranged financing. Credit cards are used by 6% of survey respondents to finance home improvements.
Many homeowners take on home improvement projects to increase the value of their homes. However, it is important to remember that not all projects will add value. Moreover, some projects may actually decrease the home’s resale value. For this reason, it is essential to get the advice of a realtor before making any major home improvements.