The world of home renovation is filled with obstacles. From choosing the right contractor and materials to figuring out how to maintain your sanity during construction, it\u2019s all one giant hurdle after the next. But if there\u2019s one area where you should feel absolutely confident and secure it\u2019s your budget. Without a solid, itemized budget your home renovation costs can skyrocket and you can easily overspend. This isn\u2019t to scare you out of considering a renovation; home renovations are an excellent way to fix major functional problems of your home while also increasing its value. Wade into the waters of remodeling with these handy budgeting tips.<\/p>\n\n\n\n
Research
\nThis is quite a broad topic, so right away we\u2019ll break it down. But just like any endeavor, research is your ultimate secret weapon. Every decision should be thoroughly researched before being made. But here are the specifics:
\nProjects: With the wonderful world wide web, there\u2019s no excuse for not knowing the average cost will be for your specific project.
\nContractors: The internet will be of some help here, but don\u2019t forget to talk to your friends and neighbors about who they\u2019ve used and why they do or don\u2019t like their work. Check their finished project sites, as well. Pick your top 5 and set up interviews.
\nMaterials: This can be anything from new furniture or appliances to flooring and countertop options. Sometimes taking a Sunday stroll through a floor liquidator or granite store can help give you inspiration for the end result as well as what you\u2019re likely to spend.
\nPermits: Make sure you have the proper permits and follow all zoning laws in your neighborhood before even hiring your contractor. You don\u2019t want a fine for something you weren\u2019t aware you needed.
\nFinancing: There are multiple ways to pay for home upgrades. Some choose credit card offers with a 0% interest feature, home equity or lines of credit, refinancing, or just through plain savings. Your timeline will affect this, but a general rule of thumb is never borrow more than you can comfortably pay back over time. A good contractor will be able to get what you want within your budget.<\/p>\n\n\n\n
Spreadsheets
\nSure, this puts you on a Monica Gellar level of neurotic, but you\u2019ll thank yourself in the end for being so diligent. Create a spreadsheet with each and every item listed out and accounted for before you break ground. Make it, then use it. Having an itemized budget copy handy for easy reference will keep you honest and prevent you from going over. Just like tracking calories when you diet, the more meticulous you are, the better the outcome.<\/p>\n\n\n\n
Where To Spend Your Money: Do\u2019s and Don\u2019ts
\nSome things on your budget are more important than others. Paying for good work doesn\u2019t matter if the materials are super cheap. Same goes in reverse. But sometimes the cost doesn\u2019t always equate quality. DO:
\nSet aside 20% of your budget to an emergency fund. Don\u2019t touch it. Don\u2019t plan a budget without it.
\nConsider durability and cost of maintenance when choosing materials.
\nPlan for the side effects such as having to eat out, stay in a hotel overnight, or using an external storage unit for your furniture during construction. They may not be high ticket items, but they add up in the end.<\/p>\n\n\n\n
There are also some other pitfalls that can derail a budget. DON\u2019T:
\nTOUCH THAT EMERGENCY FUND UNTIL IT\u2019S OVER. And we mean really, truly, honestly over. Murphy\u2019s law, what can happen will happen. If you don\u2019t use your emergency fund and you want to buy something nice and new for your new space, go ahead. But never count your chickens before they hatch. Especially this one.
\nBuy materials before budgeting. Sure. If you have made a hobby of perusing the home improvement stores on the weekends while dreaming of grandeur, you\u2019re likely to catch a sale on something. But it can wind up costing you more in the end if what you\u2019ve bought on sale isn\u2019t enough for the project and you can\u2019t purchase anymore because the item has been discontinued. Patience is a virtue.
\nRenovate outside of your housing market. Yes, you will increase the value of your home during a renovation. You can expect a certain return on your remodels. But if the upgrades are so expensive that they now price your house far above the rest of the neighboring market you could see a major decline in what you get back. The most expensive house on the block is always the last to sell. Don\u2019t sacrifice an easy sell for audacious luxury.<\/p>\n\n\n\n
Bonus
\nCheck out what local tax breaks you can use for setting up energy efficient brands of appliances and building materials. Remodeling is the perfect time to move your home towards a greener future.<\/p>\n\n\n\n
Depending on how long and arduous your renovation is anticipated to be, set aside some money for a night or two away from the chaos. There will most assuredly be an upheaval of your regular routine. Getting away from it all for a night or two will be worth it in every way. Plan to pay for it in advance. And if you never feel the need to use it, there\u2019s extra money in your pocket for something else.<\/p>\n","protected":false},"excerpt":{"rendered":"
The world of home renovation is filled with obstacles. From choosing the right contractor and materials to figuring out how to maintain your sanity during construction, it\u2019s all one giant hurdle after the next. But if there\u2019s one area where you should feel absolutely confident and secure it\u2019s your budget. Without a solid, itemized budget […]<\/p>\n","protected":false},"author":1,"featured_media":3005,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[86,87,83],"tags":[95,94],"yoast_head":"\n