Home improvement may sound like a big project, but it can also be a great way to upgrade your living space. Whether you’re looking to add functionality or increase your home’s value, it’s important to choose projects that have a high ROI and won’t require too much time to complete. Courtney Klosterman, home insights expert at home insurance company Hippo, shares her top tips for picking the right upgrades.
According to the NAR’s 2022 Remodeling Impact Report, many homeowners who upgraded their homes during the pandemic were doing so for a variety of reasons. Some cited upgrading worn-out surfaces, finishes and materials, others wanted to make their home more comfortable or appealing, and still others were adding features or improving livability. Regardless of the reason, most homeowners reported that they were satisfied with their results and enjoyed spending time in their improved homes.
Most homeowners who did renovations during the pandemic say they were able to pay for them without making sacrifices or going into debt. However, 20% said they had to sell items or tap into savings, and 14% borrowed money or used credit cards to fund their projects.
The best way to ensure that your project costs are covered is to use cash or low-interest mortgage financing. If you need to borrow, consider a secured home equity loan or HELOC instead of unsecured personal loans. Homeowners should also check the license and insurance of contractors they hire to work on their home, and ask for business references before hiring anyone.