Emotions can run high with a home improvement project. After all, many people spend money emotionally rather than logically. They may think that buying will make them feel in the short term rather than judging the purchase as an investment with associated risks. Home ownership is almost always a mixture of hard-headed investment and soft-hearted emotional considerations. Both sides need consideration to make the right improvement decisions.

 When considering home improvement, homeowners should keep in mind that there is a both a financial and emotional aspect associated with the home improvement process.  For homeowners remodeling in order to sell a home, the situation is simplified somewhat--they expect to make improvements, sell, and move on. But for people remodeling their homes with the intent to stay for a length of time, there may be more at stake. Careful, diligent planning of a home improvement project will usually result in the best possible outcome, both financially and emotionally.

 The Home Improvement Checklist:

Know the mortgage. The terms of existing mortgages and a borrowers' objectives drive the decision to refinance a first mortgage, take a fixed second mortgage, or draw down on a line of credit. Reviewing mortgage documents is a necessary first step before making any decision.

Estimate the potential return on investment for the project. Remodeling Magazine is an excellent resource for assessing the return an owner could expect on a given project. Checking with a local real estate agent could also yield good information. An experienced agent should have a good feel for returns are typical in your area.

Choose the contractor carefully. Prepare a list of questions for contractors, check references, and interview several before deciding.

Outline the project thoroughly. The contractor should be able to work out costs for labor, permits, and materials. Home improvement loans may be padded with contingency funds in case of overruns.

Determine that the home meets current code requirements and whether permits are required for the home improvement project.

 The Emotional Aspect of Home Improvement

When considering plans, budget, and loan options for the home improvement project consider also the emotional side. Those planning on living in the home for a while should consider whether they will be satisfied with the work they are planning, or whether they might wish they had done more.