Home improvement is one way to enhance and upgrade the way your home looks and feels. A home that is outdated will have a lower resale value than one that has modern features within it. Home improvement projects come in all shapes and sizes and can be as simple as pressure washing your home to as extravagant as remodeling the entire kitchen.
When it comes to home improvement, it can become costly. In fact, the average US household spent roughly $13,140 on home services. Of course, some of the higher costs can be contributed to the shortage of wood and other materials, which has significantly increased the price overall.
Due to the rise in costs, it is important that homeowners know how much their home renovation will cost BEFORE they sign any contracts because an unexpected extra couple thousand dollars can make or break a household. Failing to budget properly for your upcoming project can leave you in a bind and cause you to feel quite strapped.
Studies conducted have found that many homeowners grossly underestimate the cost of different home improvement projects, which can cause many different issues. Below, we will go over this data a bit more in detail and show you the numbers. Knowing and having this information can help you better prepare for your upcoming projects.
Results of the Study
Some of the key findings throughout the study revealed that around 65 percent of Americans say that they find home maintenance to be a stressful process. Furthermore, the study found that around 25 percent of homeowners underestimated the true cost to paint the interior of their home, 40 percent underestimated the cost of window installation, and roughly 25 percent underestimated the cost of landscaping.
One interesting finding was that only 1 out of 10 people found that improving their home’s overall energy consumption was a benefit.
Stress and Home Maintenance Projects
When you think about the work that needs to be done around your home, do you start to feel stressed? If so, you are not alone. In fact many Americans said that home maintenance is, at least, somewhat stressful with about 15 percent of people saying that it is very stressful.
It makes sense when you think about it further. A home maintenance project requires you to plan, spend money, and then go through the execution phase of the project.
A majority of men throughout the study stated that they were less likely to become stressed out over home maintenance projects than women.
Benefits of Home Maintenance Projects
Everyone’s perception of what a benefit is for their home differs, but there does seem to be quite the consensus on which home improvement projects are the most beneficial overall to a home. Remember, these types of projects require you to invest time and money, and when you do so, you want to make sure that you are getting something out of it.
Roughly 3 out of every 10 Americans stated that the biggest benefit to home improvement is to improve the overall function of the home itself. Many of these repairs are considered necessary to make the home a place where you can get the most out of it.
Besides improving the functionality of the home, two other major benefits included increasing the value of the home, and also the comfortability of the home.
The top 6 benefits were as follows, in order from biggest benefit to least benefit:
- Function
- Value
- Comfort
- Safety
- Aesthetics
- Energy Usage
An interesting finding within the study data was that the main reason people made improvements to their home was to repair or replace a problem. This could be something such as a broken sink, a damaged cabinet door, and so on. It seems that homeowners’ motivations to make the improvements is the same as it has always been.
Is Going Green a Thing?
Becoming more eco-friendly is at the top of the list for some homeowners, but, the study actually revealed a bit more of a revelation about this. In fact, only about 8 percent of people said that their home energy’s use was of concern during home improvement.
This is interesting considering the push for a more green world, especially with climate change and all of the predicted ways that it will affect Earth and future generations.
Home Improvement’s Actual Cost vs. Perception
One of the main functions of the study performed was to determine if there was a large gap between homeowners’ perception towards the cost of a home improvement project and the reality of the project.
Interior Painting
The most popular home improvement project was interior painting with about 35 percent of American households completing such a project in 2020 alone. Around 25 percent of homeowners grossly underestimate the cost of interior painting by as much as 50 percent. For example, if the cost to paint a living room was $1,400 in reality, that 25 percent thought that it would only cost them $700.
It was pretty even across the board that homeowners would underestimate the cost of interior painting by about 50 percent for BOTH professional painting and DIY projects. Men were more likely to underestimate the cost of interior painting than women were and opposite when it can to overestimating the costs.
Landscaping
Landscaping can help improve the curb appeal of your home, but when it comes down to cost, do you know what it REALLY costs? If not, you are definitely not alone. In fact, roughly 25 percent of Americans underestimate the cost of landscaping projects.
In 2020, about 25 percent of homeowners had some type of landscaping project completed with 25 percent of them not correctly estimating the cost of service. Their estimates were about 67 percent underestimated vs. the true cost.
When asked how much it would cost to plant a total of five small trees in their yard, more than half of the respondents thought it would cost less than $300 and around 25 percent thought it would be less than $100. The actual cost to plant five small trees? Around $300 to $700 or an average of $60 to $150 per tree planted.
Window Installation
Energy-efficient, insulated windows are a great way to protect your home and block out the sounds of busy life outside. Not only will you enjoy your home’s space more, you will also have a lower electric bill each month.
Window installation is one area of home improvement that took a hit with the price increase that was occurring, and prices jumped about five to ten percent in 2021 alone. This was mainly due to a higher demand from customers and a shortened supply of workers and materials.
When asked how much it would cost to install a single energy-efficient, insulated window, around 40 percent of Americans said it would be under $250 and 23 percent said somewhere between $250 and $350. The actual cost was $120 to $1,200 or even more in some cases. Having the window professionally installed can add additional costs to the total as well.
How to Make Sure You Can Afford Your Upcoming Home Improvement Project
As you can see, the study has revealed that many homeowners are underestimating the true cost of home renovation projects. While it can seem quite impossible to know the exact cost of your home improvement project, especially with the rising cost of labor and supplies, there are some things you can do to help yourself avoid such a huge blow to the budget near the end of your project when the bill comes due. Check them out now.
Don’t Be Afraid to Get Quotes
Contractors and companies expect you to shop around and receive quotes from multiple sources, so never be afraid to. You should always get, at minimum, three quotes. By doing this, you will know a range of what you can expect to pay for the project.
The quotes you receive will also lay out the cost of labor and materials, so you can then choose which option fits into your budget best. Some people would rather pay more for higher quality while others are okay were a generic option due to the lower price point.
The biggest benefit of quotes from multiple sources is that you can sometimes use the quotes as a way to negotiate a lower price for your project. To know exactly how much the project costs minus labor, you will want to subtract somewhere between 10 to 30 percent of the cost for labor (unless the estimate specifically details the labor cost).
Take Inflation Into Consideration
You will want to budget and prepare for some inflation, especially if you have to wait for your supplies to be delivered or you plan to complete the project over a longer period of time. You should estimate that inflation may cost you anywhere between 5 to 10 percent.
Starting your project early on will allow you to take advantage of the current prices and could help you avoid any future inflation.
Know Your Materials Cost
If you have a budget that you are trying to stick between, it is important that you take some time to investigate the cost of materials upfront. This way, you know what you can expect to pay for them. Sometimes, you can even purchase your own materials, but always check with the contractor or company first before you do this.
When you find that the materials you want are causing a higher project price, exploring other alternative materials can help keep your project within your budget. For example, if you are thinking about granite counters but the cost is just too much and you are not set on the granite, you may find that quartz or butcher block is another option for you with a lower price point.
Leave Replacement as a Last Resort
Replacing anything in your home can come with a higher price tag along with longer wait times, especially when the item is out of stock or on backorder. To help combat this, if you do not need a replacement, you may want to consider refinishing the item or even having it repaired.
For example, brand-new kitchen cabinets can eat up a lot of your budget for your home improvement project. They also saw one of the highest price increases over the last couple of years with an inflation rate of almost 40 percent. The average cost to replace kitchen cabinets can vary quite substantially from just a couple thousand dollars up to tens of thousands.
For homeowners who are strapped on cash or looking to stick to a budget, this big gap may not make them feel comfortable. Repairing or refinishing your cabinets can save you a significant amount of money and provide you with a nice new look. In fact, refinishing and repairing can be done for as little as $1,500 to $4,500.
Don’t Choose DIY or a Rogue Contractor
DIY projects can and do save you a lot of money, but only if you know how to do them and are confident in your skills. If you are not sure how to do something, it is best to leave it to the pros.
With that said, you definitely want to make sure you hire professionals and not an inexperienced team or contractor. You should always make sure the professionals are licensed and insured. Never be afraid to check out a company before you sign a contract with them. Any reputable company will want you to do this as well.
What should you look for?
- Licenses
- Insurance
- Reviews
- Customer testimonials
- Before and after photos
Doing these things will help ensure that you choose the right company for the job.
The key takeaway from this is to remember to check out the true cost of the home improvement project you plan to have completed. While you may think you know what the cost will be, studies have shown that homeowners’ perceptions of the costs are highly unreliable.