Before you start picking out tile and paint chips, be sure you know how much it will cost to remodel your house.
Ready for a kitchen renovation? Anxious for a bathroom remodel? The easy part is knowing your goal for home remodeling — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value. But figuring out how to plan a home renovation that doesn’t break the bank can be tricky. Here are five key steps in planning your home remodeling project. 1. Estimate home renovation costs As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.) For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on kitchen renovation costs. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less. Something else to keep in mind: Contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a kitchen remodel increases the value of your home by 50 cents. The highest return on investment? A mid-range bathroom remodel. 2. Consider home remodeling loan options If you plan on borrowing money to fund your home renovations, there are a number of loans out there to help with just that.
3. Get home renovation quotes from contractors Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used. Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense. 4. Stick to the home remodeling plan As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible. 5. Account for hidden home renovation costs Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated. Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly. *Gibbons, Vera. (Mar. 13, 2018). How to Set a Home Renovation Budget. Retrieved from, https://www.zillow.com/blog/budget-for-home-renovations-177504/
8 Comments
10/6/2018 07:45:00 pm
The first thing you should do is to put all your thoughts in writing. I am not saying you go ahead and draft a contract or something. I mean everything inside your head should be readable so you can easily see whichever might need polishing. Once everything is perfect, you can see this easily yourself. You will know you are ready and there will be less mistakes because you have already reviewed this more than a couple of times. Again, it's best if you can read things. If you can draw, then it's all the more better.
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8/9/2019 12:07:53 pm
The budget simply never comes. Once a little money reaches your bank account it will be directed right away to other expenses and next thing you know, no renovation can ever take place. I keep wondering why a millenial's life is like this. Will it ever change in the long run? You see I want to buy my children nice things too. How long will we all have to live like this? Is this the normal behavior now? Is it even normal to worry about things like this? Earth is supposed to be abundant but here in the city it feels a little different.
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5/17/2020 12:15:08 pm
This is a great blog to read, I really like the way you have presented your content. I am planning a home renovation soon and looking for making a perfect budget, this article will really help me a lot for planning for my renovation budget.
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7/21/2020 01:50:02 am
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9/9/2020 09:04:55 am
Thank you for making us read this well written article on how to set a home renovation budget. I enjoyed reading this article as it provided us lots of information regarding it. I am sure many people will come to read more about it in future.
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9/24/2020 01:06:37 am
Thank you for sharing this information about how to set a home renovation budget It was useful and interesting. You indeed have written it in a layman way so that anyone can understand and work accordingly. You have done a great job... Great post!!If possible visit this website Nuhomes.co.nz to gain more idea or tips on the same.
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9/25/2020 07:11:03 am
Thank you very much for presenting this data about how to set a home renovation budget, it’s known how to get approved but what are the next steps after getting the approval… Wonderful information, thanks a lot for sharing kind of content with us… great post!
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10/6/2020 09:26:43 am
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