Renovating your home is always a bigger job than you think it will be. Budgeting is super important for a successful renovation, because there is almost always something extra you’ll find along the way.
If you want to get the ball rolling on your home renovations, you should start with a thorough budget. Check out a few tips on how to formulate that budget, and go into your home renovation with confidence.
Decide on what you need renovated
Take the time to think over which needs aren’t being completely met by your current living situation. You may need more space. You may need a new bathroom. Whatever it is, deciding on exactly what you need to get done is the first step to formulating a budget for the work.
Pricing can shift rapidly, depending on what sort of work you need to get done, so think hard about how you use the space in your home before you go knocking down any walls.
Weigh the cost versus the value
When you spend money on upgrading your home, it’s important to know what kind of equity you’re gaining with the work. If you want to sell your home down the road, the equity you gain will help boost the selling price.
A minor bathroom remodel can draw more than a hundred percent ROI (return on investment) if you don’t go overboard with materials. Finishing the attic or basement are also two high return investments for your next renovation project.
Figure out how to finance the project
The most challenging part about renovating your home may be figuring out how to finance the whole thing. Unless you have a lot of money in savings, you will need to finance the work done to renovate your home.
Try looking into what a HELOC or a home equity loan can do to help you get the job done. Credit cards may also be a viable option for funding.
Get bids from several different contractors
Finding the right team to do the renovations on your home is another notable step to managing your renovation budget. You have to know what it’s going to cost you to have professionals do the work you aren’t capable of doing.
It’s great to have a strong DIY effort, but some things are better left to the pros. Scout out contractors, and be thorough. Interview at least three different options before making your final choice on hiring.
Mix materials to save money
You can save money on your renovation budget if you think rationally about the materials you use. For instance, you could spend a little more to put hardwood floors in the living room and kitchen, but add tile or vinyl to the rest of the house to save some dough.