A recent survey reveals that a majority of Americans enjoy watching do-it-yourself home improvement shows, but a majority do not consider themselves qualified enough to take on certain projects. Even those who are confident in their DIY skills hire professionals to handle certain tasks. Whether you want to save money or improve your home, there are many things to consider when undertaking a home improvement project. The following will give you an idea of the costs involved, the ROI, and how you can tackle your own project.
Cost of home improvement projects
According to the Joint Center for Housing Studies, Americans spent $450 billion on home improvement projects from 2015 to 2017. This money covered a variety of home improvement projects ranging from gutting a kitchen to installing new security systems. Homeowners scraped their savings for unexpected repairs and took out home equity loans to finance their projects. Depending on where you live, the average cost of home improvement projects varies. However, it can be estimated that the average cost of a home improvement project will run between $3,500 and $4,000.
While home improvement projects can increase the value of your home, not all projects will immediately translate into a positive return. A minor kitchen remodel can cost upwards of $22,500 and will likely not increase the home’s value immediately. This can be a reasonable cost if you plan to stay in your home for many years. However, if you’re planning on selling your home soon, the project may not be worth the extra cost.
Estimates of ROI
When you are thinking about making improvements to your home, you may be wondering how to get the most ROI for your money. While you can’t get an as-completed appraisal, you can estimate your ROI using the 70 percent rule of thumb. However, remember that short-term value varies from long-term value, and some projects are likely to bring more value to your home in the future. Renovations that add usable space and create a new outdoor living space tend to yield higher ROIs.
Although these averages are useful for determining the value of your home investment, they do not tell the whole story. For instance, a home improvement that yields a high ROI in a desirable neighborhood might not have the same effect on a market that doesn’t exhibit the same trends. Moreover, there’s no guarantee that your home will increase in value when the time comes to sell. It’s better to focus on projects that bring consistent ROI.
Although many homeowners may be tempted to try do-it-yourself projects in order to save money, the fact is that they often have to make more trips to a home improvement store than they anticipated. They also may have to start over if mistakes are made. To save money, Di Martino recommends multiple small projects, including interior painting and deck and driveway pressure washing. Other projects include updating door and cabinet hardware.
Cost of hiring a contractor
Whether you’re considering a DIY project or hiring a general contractor for your home improvement project, it pays to understand the costs involved. Hiring a general contractor can make the process go smoothly, as they’ll know the right sequence for various trades. Home improvement projects can be stressful, so you may not realize how much goes on behind the scenes. A general contractor will also be familiar with current building costs and know where to find the best prices for products and labor. Moreover, a contractor will help you stick to your budget while offering a larger perspective of the project.
The first step in hiring a general contractor is to gather three estimates from different contractors. This will give you a clearer picture of the quality of their work and the appropriate costs. You may be tempted to go with the lowest bidder, but the work they perform is marginal. The same goes for the high-priced bid. It’s crucial to have three estimates before making your final decision. But the more quotes you collect, the more informed you’ll be.