Financially planning for a home renovation is just as an important part of the process as the actual renovation itself. Whether you’re looking at buying a fixer upper of a home to renovate before moving in, or simply looking to remodel your kitchen, you’ll want to get an idea of costs before getting started. A home renovation doesn’t need to be as stressful a process as it’s made out to be, as long as you’re prepared.
When it comes to home renovations, knowing what you want is easy – figuring out what you can actually afford is the tricky part. Here our experts share their tips on how to financially plan for a home renovation.
1. Determine Your Home Renovation Priorities
When it comes to home renovations and remodels, the options are endless – that’s why it’s important to prioritize your ideas based on what you need first. The best way to do this is to write down all of your remodeling goals and rank them from highest priority to lowest – this way you can be sure of where to spend your money first.
For example, you may want a renovated kitchen with a sparkling new granite countertop at the top of your list as it will add value to your life and home. This means you should prioritize it over something that you don’t really need (or might never get used) – like a pool or indoor gym.
2. Let The Return On Investment Be Front Of Mind
Planning a home renovation for your own needs is great but it’s always a good idea to think about how it will appeal to future buyers in case you want to sell later.
Be sure to always keep the return on your investment at the front of your mind when deciding on which home renovation projects should be at the top of your priority list. The last thing you want to do is to spend all of your money upgrading your bathrooms or adding a walk-in closet to add value to your home, only to end up selling it for less than you paid. Speak to a professional contractor who knows how to make the most of a home renovation, and can advise you on the best renovation projects that yield a great return on your investment.
3. Do Your Own Research
When you’re planning a budget for a home renovation, it is essential that you have an idea of how much everything costs. The best way to have a good understanding of how much something is going to cost you, is to do your research.
If you’re looking to transform your master bathroom, then you can research how much the different types of tiles would cost, or how much a new bathtub is. You can browse prices online, visit your local Home Depot, or speak to a professional contractor to give you an idea of general costs.
4. Ask For A Quote
After you’ve done your research on how much things cost, you’ll find that you’re in a better position to ask for a quote from a contractor for exactly what you want and are more likely to be given an accurate estimate. When asking for a quote, be sure to give a complete list of everything you want done, starting from the structural changes right down to the finer details – like installing new wall plugs. The more comprehensive the list, the less likely you’ll be surprised later on with extra costs you weren’t planning for.
5. Set Your Budget
Once you’ve figured out what your renovation priorities are, and have an idea of how much things cost, you’ll need to set a budget.
Once you’ve set your budget, the next step is to figure out how you’re going to pay for the project. If you’ve already got the money lined up, then you’re sorted and all you need to do is stick to your budget. If you’re borrowing, however, then you need to weigh up your different loan options:
- A home equity loan
- HELOC (home equity line of credit)
- A cash-out refinance
Do your research with the bank on the different options available to you and lay out a repayment plan so that you are prepared for how much your monthly repayments will be, and how long you’re going to be paying them for.
Hiring The Right Home Renovation Team For The Job
Home renovations can seem like a daunting project – but it doesn’t have to be if you’ve got the right team to do the job. Our team has been helping clients build their dream homes for over 40 years, and we can help make your home renovation an enjoyable experience. Hire a home renovation team that you can trust, and give us a call at (561) 988 -2637 to discuss your home renovation needs. Let Miller Construction & Design help bring your dreams to life.