Home improvement is the repair, maintenance or restoration of residential real property such as installing a new roof, painting a room, paving a driveway, adding landscaping or renovating a kitchen or bathroom. It is an important aspect of homeownership, as it increases the resale value of the property and can reduce utility bills and improve a home’s energy efficiency.
The most common home improvement projects include refreshing shower areas, adding storage space, laying new tile or replacing appliances and cabinets. More extensive renovations such as basement finishes, remodeled kitchens and adding an extra bedroom can increase the resale value of a home by up to 20%.
According to the Census Bureau, in 2017 and 2019, American homeowners took on an estimated 115 million home improvement projects. That’s a lot of money and a huge boost to the economy, helping companies such as Home Depot to reap major gains.
However, not every project delivers its promised ROI. In fact, very few resale renovation projects fully recoup their costs, and most homeowners only see a return of 60 percent or less, according to the Cost vs. Value report from Zonda Media, a real estate market research firm.
One way to avoid wasting your hard-earned dollars is to focus on projects that will appeal to the broadest range of potential buyers and are in line with the style and character of your neighborhood. You can also protect your investment by paying for improvements in cash rather than going into debt, which can detract from the overall cost of a home and often results in interest charges.
Another smart move is to choose a contractor with a good reputation in your community and who has the appropriate insurance coverage for your project. It’s also a good idea to ask for references from past clients and check business insurance and licensing credentials.
A good contract will contain the following:
Description The home improvement contract should describe the work to be performed, including materials and any other items agreed to by both parties. Be sure the contract includes a description of any special provisions, such as those related to mask use and cleanup procedures. Dates The contract should include the approximate dates when the work will begin and when it will be substantially completed.
A well-drafted contract will include the name, address and MHIC license number of both the consumer and contractor. It should also include a detailed description of the work to be done and any warranties or guarantees offered by the contractor. It should also detail how payment is to be made and when it is due. Finally, it should provide a dispute resolution process. Maryland consumers should always get a written contract from a home improvement contractor before any work begins or funds are paid. The contract should be signed by both parties and dated before any work is performed. If you have questions about a contract, contact the Maryland Home Improvement Commission.