You can increase the value of your home by improving certain rooms. A bedroom, dining room, and living room add between one and three percent to the overall value of a home. Exterior improvements add anywhere from two to five percent to the value of a house. An average return on investment is about eighty percent a year after making these changes. The longer you wait before selling your home, the higher your return on investment will be. You can also increase its value with time by waiting a year or more before selling.
Cost vs. value of home improvement projects
The annual Cost vs. value report for home improvement projects is a great way to determine how much an improvement project will increase the resale value of a home. The report is based on averages compiled from third-party estimates of labor costs. Home improvement projects should never be undertaken based on the inflated estimates, as this can be disastrous for the resale value of a home.
Several studies show that the average return on investment (ROI) for home improvement projects is negative, with an average return on investment of only three percent. If home improvement projects were cost-effective and gave a positive ROI, people would not bother to do them in the first place. However, home improvement projects can increase the resale value of a home and help speed up its sale. As the economy improves, more people are looking to renovate their homes to increase their resale value.
Choosing a contractor
There are some things to keep in mind when choosing a contractor for home improvement. For one, you should always keep your budget in mind. If you’re looking to save money, go with the lowest price you find, but be wary of lowball bids from contractors who might be trying to cut corners. Secondly, a low bid from a contractor with little experience may be a sign that they’re desperate for work, or have other hidden costs. Ultimately, the price should not be the most important consideration. Rather, you should focus on the other P’s: experience, portfolio, and past clients. Regardless of whether a contractor is cheaper, look at their work process, their price range, and their references.
Check reviews on online review sites. Sites like Angie’s List, HomeAdvisor, and Yelp are excellent resources for researching a contractor’s reputation. While reviews are no substitute for checking references, a contractor with several negative reviews may be an indication of a substandard contractor. Moreover, read customer reviews in the local area and consider the quality of the work provided by a contractor before hiring them.
Getting a bid
If you’re getting a bid for home improvements, you should take notes and gather promotional materials. Each contractor will have his own ideas about how to perform a certain project. Make sure you ask questions, and be sure to ask about any errors in the bid. After all, you will need to decide what to do next. Here are some tips to make the process smoother for you. Follow these tips to make sure your bid is the best.
First, make sure the contractor’s bid includes all the materials and labor involved in the project. Ask if the contractor will provide sod or grass seed. Similarly, ask him to cover driveway protection. Some contractors fail to list these items on their bids. Using notes or emails to keep track of what is included and not included in their proposals will help you get the information you need. Remember to ask about any materials or services you didn’t mention in the description, too.
Planning a budget
Using online resources, such as HomeAdvisor, can help you estimate the costs of various home improvement projects. You should also consider how much different materials and finishes will cost you. These little decisions can add up quickly. The more you know about the project, the better you can plan your budget. Listed below are some tips to make your budget go farther. Listed below are some other ways to stay within budget:
Prioritize the project: Decide what you want to accomplish, beginning with the most important aspects first. Make a list of all the projects that will need to be accomplished in the next year or so. Include the “nice to haves” as well. Even if you’re on a tight budget, it doesn’t mean you can’t have them all. For example, you might want to replace your air conditioning system or replace ductwork, so you can improve the energy efficiency of your home.
Avoiding unscrupulous contractors
Before hiring a home improvement contractor, make sure you know exactly what you want done. Legitimate contractors won’t ask for more than 20-30% of the project up front. Be wary of any contractor who asks for cash only or requires you to sign over a check or loan against your home. Also, check whether the contractor has a license and is insured. To avoid scams, get referrals from trusted people. Check online for any complaints about contractors and check their reputations.
Ask to see a permit before signing a contract. Not only will this inform the tax assessor, it will also help you avoid unlicensed contractors. You will also get an independent evaluation of their work. Without a building permit, the contractor may inflate their price and blame structural problems or design changes after the project began. Then, you’ll be stuck with a substandard finished product and a massive bill.