Each year, New York residents invest more than a billion dollars in home improvement and remodeling projects. From a new roof to a major kitchen or bath remodel, this work adds value and beauty to our homes, as well as comfort for the people who live in them. It’s important to know how to maximize ROI through strategic planning and thoughtful decisions before embarking on a project. To do this, you’ll need to assess your budget, motives, and future plans for the property. In addition, understanding the difference between home improvement and remodeling will help you plan your budget and avoid surprises down the line.
Home improvement is a wide-ranging category of projects that encompasses any type of repair, alteration, painting, renovating, restoring, repairing, modernizing, moving or demolishing a residential or noncommercial building or adding to it. It also includes the installation of insulation, air conditioning units, heating systems, water heaters and appliances, plumbing and electrical fixtures, window replacement, flooring and carpeting, landscaping and fences, nonpermanent structures such as sheds, porches, patios and decks, and similar works.
The main reason for upgrading a home is to make it more functional for the current residents or fit their lifestyle better. However, the motivation can vary depending on the needs and personality of the homeowner. In a survey conducted by the National Association of Realtors in 2022, some reasons for upgrading a home included updating worn-out surfaces, finishes and materials (46%), adding functionality or features (31%), and making the house more attractive (9%).
A big part of the home improvement process is planning and researching to get the best quality at the lowest cost. This will usually involve looking for a contractor with a solid track record, good references and a license and insurance coverage. In this regard, many homeowners use online services such as aggregators to connect with service providers. These sites typically provide a list of prescreened contractors with their price ranges and contact information, which can be helpful in comparing quotes.
It’s important to remember that just because a project falls under the umbrella of “home improvement” doesn’t mean it won’t affect the value of your home. Some projects, like replacing a kitchen countertop or bathroom fixtures, will likely increase your home’s resale value more than others.
Other projects, such as a backyard deck or installing smart home technology, may not significantly raise your home’s resale price but can greatly improve your quality of life. The key is to plan carefully and prioritize your renovations based on your personal needs, lifestyle and future goals for the property. By doing so, you’ll be more satisfied with your upgrade and feel confident that it will pay off when you decide to sell. It’s also wise to save up for large projects through a high-interest savings account or consider using a credit card that offers promotional financing such as the Synchrony HOME(tm) Credit Card. This will allow you to spread the costs of your home improvement over time and manage your debt responsibly.