Home improvement, also known as home renovation or home remodeling, is a great way to increase the value of your house. But there are some things that you should know before you start any projects to avoid overspending and getting ripped off.
The home improvement industry has shown some excellent growth results in recent years, especially during the COVID-19 pandemic, with more consumers looking to make upgrades to their property and improve its comfort and functionality. This includes renovations and repairs to existing homes, as well as the construction of new buildings, such as garages, gazebos, pools and decks.
It’s important to find a contractor who is licensed and insured for your project. Make sure that you read reviews, check references and ask friends and neighbors for recommendations. Also, you should always get an estimate before any work starts. This will prevent any surprises down the line.
In New York State, if the project is considered to be a capital improvement you can be exempt from sales tax for labor. This can be done by filing with the Department of Taxation and Finance. Each state’s definition of a capital improvement may vary so you will need to contact a CPA or do your own research to make sure you are covered.
While some home improvements will definitely add resale value, many homeowners are spending too much money on renovations that won’t increase the price of their home or could even make it harder to sell. For example, adding a unique light fixture may appeal to you but might be a turn-off for potential buyers. It’s also a good idea to talk to a real estate agent about your plans before you begin any high-end upgrades.