Home renovations provide several advantages. Whether you’re looking to enhance your home’s aesthetics and living environment or transforming it before putting it on the market, updating your dwelling is one of the most profitable decisions you can make.
Here are 4 tips for working out your home renovation budget.
What is your purpose for renovating?
Before renovating, you first need to identify your reason. Renovating for lifestyle reasons requires a different approach for selling purposes. If you are renovating to enhance your home’s comfort or livability, you need to consider your family’s needs. An outdoor kitchen would be beneficial for entertaining guests. An additional bathroom may also be in order for your growing family.
If renovating for sale, you need to properly asses your house and focus on changes that will make it more attractive to prospective buyers. The backyard may need revamping. A lick of paint throughout the house will help freshen up your home.
Set your renovation budget
Home renovation projects can be quite expensive. Before you start choosing paint colors or floor tiles, you first need to determine how much you can afford.
Renovation costs can quickly get out of control. Sometimes, people decide that they want this and that, and then realize later on that it’s out of their budget. To prevent this from happening, it is best to set a budget early on. This is important so as to prevent disappointment and financial distress later on.
Get quotes from contractors
Now that you have an idea about what you want to achieve and how much you are willing to spend, it’s time to look for contractors.
If you don’t know any contractor, you can ask referral from your family and friends. Or better yet, go online and search for contractors in your area. Narrow down your list to 3 – 5 contractors, and ask for a quote from each of them. This way, you can compare the prices and find the one that offers the best deal.
Account for hidden costs
Just because the contractor gave you a quote for $30,000, it doesn’t necessarily mean that will be the final cost. During the renovation process, some contractors find some issues that need to be dealt with. This is one of the major reasons why renovation projects end up costing more than anticipated.
Make sure that you prepare at least 10% to 20% for unforeseen experiences, so you won’t be scrambling to come up with extra money.