If you are considering doing a renovation project at home or planning to hire a contractor, there are some questions you should ask yourself. Home Depot reassures homeowners that they can do it themselves, but four out of five homeowners use the services of a licensed specialist, 51% of whom hire a licensed tradesman, 36% hire a construction manager, and 20% use a designer. Home improvement television shows are a favorite pastime for Americans, and yet most people do not consider themselves skilled enough or have time to do certain projects themselves.
Cost of renovations
The cost of home renovations can be high, with some remodeling projects racking up tens of thousands of dollars. However, increasing home values may be making them more affordable. According to Black Knight, a mortgage technology company, the average homeowner will increase their equity by $48,000 in 2021, up more than three times the value of their home in 2020. Rising home values also increase the costs of labor, which is largely out of the control of homeowners.
Cost of do-it-yourself projects
The number of homeowners who perform home improvement projects by themselves is on the rise. More Americans are opting for the DIY approach, despite the rising costs of hiring a professional. A bathroom renovation, for example, can cost upwards of $10,000, though a DIY approach can save a home-owner up to $4,500. The average cost of a bathroom renovation is also much lower than for other rooms. Other projects to consider are replacing windows, doors, flooring, and fencing. Landscaping upgrades can cost a homeowner under $1,000 and can also be done by a do-it-yourselfer.
Cost of hiring a contractor
Typically, a homeowner should gather at least three estimates before making a decision about hiring a home improvement contractor. The more estimates a homeowner has, the clearer the picture of the various companies. The more estimates a homeowner has, the more accurate an idea she will have of the costs and quality of the work. She may receive one bid that is a great bargain, but the quality of the work is subpar.
Licensing requirements for contractors
When you hire a contractor for home improvement projects, you need to know what kind of licensing they have. In New York City, for example, you need to be 18 years of age and be of good moral character. In addition, a home improvement contractor does not have the right to do plumbing, HVACR, or electrical work without a proper license. Additionally, contractors must adhere to local laws, which can be confusing. In some cases, homeowners have been fined when contractors failed to obtain the proper permits or licenses.
Insurance incentives for homeowners
Many states offer financial incentives for homeowners to make improvements. A new report reveals that, on average, homeowners in 10 states could save at least 7% on their home insurance premiums. The savings in these states are significant: homeowners in Texas, Nebraska, and Wyoming could save more than $500 per year. The federal government has also stepped in to encourage homeowners to improve their homes with tax incentives. Adding insulation, updating windows and doors, and installing more efficient appliances can also lower homeowners insurance premiums.