You cannot just simply withdraw your cash and hop on a house renovation project right away. Needless to say, that could seriously hurt your savings, regardless of how big or small your remodeling project will be. Thus, you should draft your renovation budget first before spending anything, so you can have good control over your cash flow through the process.
How to Prepare a Home Renovation Budget
It is important to include the drafting of your budget in the planning phase of your house remodeling venture. You do not want to bleed your wallet out or cut the renovation short because of lack of finance. Thus, you should read these tips, for you to know how you can draft an effective budget for house remodeling.
Identify the Areas You Want to Renovate
Of course, you should begin by knowing which areas you want to renovate. It could be small stuff like adding new faucet fixtures to your house or making an overall change to your kitchen. Take note of the things or materials you need, and leave a small room for labor expenses.
You can also simply identify the percentage value of the area you want to renovate and draw your budget estimation from there. If you want to remodel your kitchen, for example, you can note that kitchens usually costs around 10 to 15% of your property’s overall value. Therefore, if your house property costs around $400,000, it is safe to put your kitchen renovation budget on $40,000 to $60,000.
You should also remember that there could be hidden renovation costs waiting for you. For example, if you want to renovate your roofing, the contractors could discover some problems with your ceilings, beams or posts. It is best if you’d allow a significant amount over the overall estimated amount to easily cover such unforeseen expenses.
Look for a Contractor and Get Some Quotations
After identifying the area, you want to renovate, you can look for the right contractor you would hire. Ask for quotations from them, and see which one offers a clear breakdown of their services and materials. Make sure nothing is hidden away from you.
Feel free to shop a bit until you find the best deals. Never easily fall on extremely low rates, as those probably has tons of hidden charges. You can also ask around your friends and acquaintances for recommendations.
Follow Your Renovation Plan and Budget as Closely as Possible
Any changes to your plans can cost a lot. Remember to stick to your plans and budget as the renovation goes on, for you to avoid sudden expenses. This could also save you a lot of time and hassle, and help you make sure you are not overdoing anything.
Take Renovation Loans
If you need to renovate your home but your saving is not enough, consider having renovation loans. There are few loan types you can avail for such purposes, like the refinancing, cash-out refinance, and Home Equity Line of Credit (HELOC). You just have to know more about each of them, for you to decide which is perfect for you to avail.
Remember these points for you to have a good guide in drafting your renovation budget. This can help you a lot to keep your house remodeling project on track, avoid straying away and adding tons of unnecessary stuff, and finally helping yourself spend the least amount for it.
Key is, you should know what you should include in your plan, know about their price rates, and make some allowances for unforeseen expenses. That should help you go through your home renovation with fewer worries.
Image Source: Freepik
Call me today and have my team work for you. You will be thankful that you did!
Your Realtor for LIFE
Do you want your home selling experience to be made easy?
Ed Constable is a top Realtor in Fenton, MI, and surrounding areas!