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You’re thinking or actively looking for a basic of some major home improvements? Doing a project having such a big impact on quality of life is always inspiring. But it can also be become a major headache.

You’ll find below the basics to keep in mind to make your reno project a success and not a money drain or source of stress.

Jump to section:

Popular home improvements

Funding your project

Projects return on investment (ROI)

Budget for success

DIY or hire a pro

Home Renovation Guide’s Articles

Homeowners renovate for 4 main reasons. Which is yours?

Increase quality of life: Bathroom, kitchen and outdoor improvements usually fall into this category since they have a big impact each day. This is the main reason home owners renovate: 42% of homeowners renovate to improve living space.

Increase space: When the family is getting bigger renovating a room or finishing a basement or an attic is often one way to increase livable square footage without moving into another house. 18% of homeowners do it for space.

Extend years in the home: Home modifications for senior are popular (30% of homeowners) because they help them stay longer more independently in their home.

Increase sale value: Some homeowners like to invest some money into some popular home upgrade in order to get a better price selling their home: for 12% increased sale price is the main reason for renovations.

Popular Home Improvements

Thinking of making some changes around the house? Lets look at some popular projects homeowners often tackle before we go into details:

Kitchen Remodels

What it involves: Updating appliances, counter tops, cabinets, and layout. Picture swapping out that old fridge for a sleek, energy-efficient model, or re-configuring the layout to create a more functional space. 21% of homeowners renovate their kitchen.

Benefits: Increased home value, improved functionality and aesthetics, and a more enjoyable cooking and entertaining experience. Imagine cooking in a space that feels both modern and welcoming.

Bathroom Renovations

What it involves: Upgrading fixtures, tiling, lighting, and possibly adding features like heated floors. Think about the luxury of stepping onto warm tiles on a cold morning or enjoying better lighting for your morning routine. 29% of homeowners want to renovate their bathroom.

Benefits: Increased home value, a spa-like atmosphere, improved daily routine, and better functionality. A refreshed bathroom can transform your morning or end of evening routines into a more pleasant experience.

Landscaping

What it involves: Enhancing the outdoor areas of your property through lawn care, planting, adding patios or decks, and other features. Visualize a beautifully landscaped garden or a cozy deck where you can unwind after a long day.

Benefits: Increased curb appeal, boosted home value, and a more enjoyable outdoor living space. A well-maintained yard can become your personal oasis. 11% of homeowners plan to improve their outdoors area.

Energy-Efficient Upgrades

What it involves: Upgrading insulation, windows, appliances, and possibly installing solar panels. Think about the comfort of a well-insulated home and the satisfaction of lower energy bills.

Benefits: Lower energy bills, reduced environmental impact, increased comfort, and potential tax incentives. Making your home more energy-efficient is not just good for the environment but also for your wallet.

Home improvements are popular:  43% of homeowners are planing an home improvement project within 2 year.  Most projects use a combination of different funding sources, with cash and home equity being the most common methods.

Popular Improvement Trends and Ideas

• Smart home technology integration: Adding automated lighting. Imagine controlling your home’s lighting, security, and temperature with a phone app.
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• Multi-functional spaces: Designing areas that serve multiple purposes, like a home office that doubles as a guest room. This flexibility can be a game-changer, especially if you’re working from home.
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• Sustainable and eco-friendly materials: Using bamboo flooring, recycled glass countertops, and low-VOC paints. These choices are not only better for the environment but also create a healthier living space for you and your family.

Each of these projects can enhance your home’s appeal and functionality. Whether you’re considering a minor update or a major overhaul, these popular home improvement projects can make a significant difference in your living space.

Funding Your Project

Home improvements can be a significant investment. Here are some ways to finance your projects and plan your budget:

Learn Homeowners Financed Their Home Renovations:

How a HELOC Transformed a Kitchen and Bathroom.

Turning a House into a Home: A Family’s Renovation Journey.

How a Cash-Out Refinance Transformed Our Luxury Home.

Saving Up

Open a dedicated savings account for your home improvement goals. Keeping your funds separate helps you track progress and stay motivated. Consider setting up automatic transfers to make saving effortless.

Cut back on some non-essential expenses to free up cash. Take a close look at your monthly spending. Cutting back on some dining out, entertainment, and subscription services can free up significant amounts of cash for your project.

Use windfalls like tax refunds or bonuses to boost your savings. Extra funds, such as bonuses or tax refunds, can give your savings a substantial boost, helping you reach your goal faster without impacting your daily budget.

Financing Options

Home Equity Loans: Use your home’s equity as collateral.

• – Pros: Lower interest rates compared to personal loans, making this a cost-effective option.
• – Cons: Your home is at risk if you default on the loan, so it’s crucial to have a solid repayment plan.

Personal Loans: Unsecured loans with fixed interest rates.

• – Pros: No collateral needed, so your home is not at risk. These loans can be easier and quicker to obtain.
• – Cons: Higher interest rates than home equity loans, which can increase the overall cost of your project.

Credit Cards: Convenient for smaller expenses.

• – Pros: Easy and immediate access to funds, which can be useful for covering incidental costs.
• – Cons: High-interest rates can lead to significant debt if the balance is not paid off promptly. Use cautiously to avoid financial strain.

Go more in dept to compare funding options:  Compare funding options for your home renovation according to your budget and project needs.

Projects Return on Investment (ROI)

ROI is the amount of value you gain from an investment. Understanding ROI can help you prioritize projects that will not only enhance your living space but also add value to your home.

• – Kitchen Remodels: Typically recoup a significant portion of your costs (92%) when you sell your home. A modern, functional kitchen can be a major selling point.
• – Bathroom Renovations: Also offer high ROI with 83%, making them worthwhile investments. Upgraded bathrooms can greatly improve your home’s appeal and comfort.
• – Understanding ROI helps you choose projects that offer the best financial return, ensuring you make the most of your investment. Our ROIs are from our Home Renovation Survey.

Budget for Success

Smart budgeting is important for a smooth home improvement experience. Renovation projects cost vary greatly by project and were you live. We’ve the top 20 most popular renovation project cost for different quality levels to help you have a cost basis for reference.

Follow these tips to keep your finances in check:

Thorough Research

Don’t just guesstimate. Get detailed quotes from multiple contractors or suppliers to understand the true cost of materials and labor. This can prevent surprises and help you plan accurately.

Compare prices to ensure you’re getting the best deal without compromising on quality. It’s worth taking the time to find the right balance between cost and value.

Expect the Unexpected

Always include a buffer of 10-20% in your budget. This covers unforeseen expenses that may arise during the project, such as discovering structural issues or needing to make design changes.

Unexpected costs are a common part of home improvement projects. Planning for these can save you stress and ensure the project stays on track.

Prioritize Wisely

Not all projects are created equal. Focus on improvements that meet your most pressing needs and offer the best value for your money. For example, prioritize fixing a leaky roof over installing new landscaping.

Prioritize projects that enhance your daily life and provide a good return on investment. This approach ensures your money is spent on the most impactful areas.

Track Your Spending

Keep meticulous records of every expense. This helps you stay on top of your budget and identify areas where you might be able to save. It also provides a clear picture of where your money is going.

Use budgeting tools or apps to monitor your spending in real-time and adjust as necessary. These tools can simplify the process and keep you informed about your financial status.

A well-planned budget isn’t just about avoiding overspending. It’s about maximizing your investment and ensuring your home improvement project brings you joy and satisfaction for years to come. By following these tips, you can navigate the financial aspects of your project with confidence and ease.

Need an idea of a typical project cost?  See the top 20 common home renovation projects cost. Find typical projects costs also for basic, medium and higher end quality.

DIY or Hire a Pro? Make the Right Choice

Deciding whether to tackle a home improvement project yourself or hire a professional can be challenging. Here’s a breakdown to help you make the right choice:

DIY (Do It Yourself)

Pros:

• – Potentially save money on labor costs. By doing the work yourself, you avoid paying for a contractor’s services.
• – Learn new skills. DIY projects can be a great opportunity to gain hands-on experience and expand your skill set.
• – Have more control over the project. You can work at your own pace and make decisions on the fly.

Cons:

• – Time-consuming. DIY projects can take much longer than anticipated, impacting your daily life.
• – Requires skills and knowledge. Without the right experience, you might face challenges that could complicate the project.
• – Mistakes can be costly. Errors can lead to expensive fixes and may end up costing more than hiring a pro.
• – May void warranties. Some warranties require professional installation to remain valid.

Hiring a Pro

Pros:

• – Expertise and experience. Professionals bring a high level of skill and knowledge to the job, ensuring quality results.
• – Faster completion time. With their experience, pros can often complete projects more quickly and efficiently.
• – Professional results. Expect a higher standard of work and finishes that meet industry standards.
• – Warranties often included. Many contractors offer warranties, providing peace of mind and protection.

Cons:

• – Higher upfront costs. Professional services can be expensive, impacting your initial budget.
• – Less control over the process. You’ll need to communicate your vision and rely on the contractor’s execution.
• – Need to find a reliable contractor. Finding a trustworthy and skilled professional can take time and effort.

Factors to keep in mind

Complexity: Simple tasks like painting or minor repairs are often suitable for DIY. Major renovations, however, typically require professional expertise to ensure safety and quality.

Budget: DIY can save on labor costs, but unexpected expenses might arise, potentially leading to higher overall costs. Professionals offer upfront pricing and can often source materials at better rates.

Skills and Experience: Be honest about your DIY capabilities. Overestimating your skills can result in mistakes that are costly to fix.

Time: DIY projects can be time-consuming and may disrupt your daily routine. Professionals, with their experience, are generally more efficient and can complete projects on time.

Finding a Reliable Contractor

• – Ask for recommendations from friends, family, or neighbors. Personal referrals can lead to trustworthy professionals.
• – Check online reviews and ratings to gauge the contractor’s reputation and past work.
• – Get multiple written quotes and compare prices and services. This helps ensure you get a fair deal and understand what’s included.
• – Verify licenses and insurance to ensure the contractor meets local regulations and is covered in case of accidents.

Pitfalls to Avoid

• – Underestimating Costs: Obtain detailed estimates and include a buffer for unexpected expenses to avoid budget overruns.
• – Skipping Permits: Check local regulations to ensure you have the necessary permits. Failing to do so can result in fines and project delays.
• – Choosing the Wrong Contractor: Research thoroughly, check references, and trust your instincts. A thorough vetting process can prevent issues down the line.