Setting a budget is important, so you don’t spend your savings on remodeling and not have an emergency fund for the mortgage or other needs. Use these tips to set a budget for remodeling and to determine how much you will need to spend to update your home.
How Much Should You Spend?
A good starting point to budget for a home remodel is to set aside about five percent of the purchase price of your property. If it’s been several years, or decades, since you bought it, then you should consider five percent of its current value.
You will need to get an appraisal to find out how much your home is worth, so you can figure out how much value you’ll be adding to the house after the renovation. Also, assign each project or section of the house a certain dollar amount when figuring out the budget.
Does it Add Value?
As you’re assessing each room for changes, find out how much value you’ll be adding to the property by remodeling it. A home appraiser can give you an idea of how much value each of the changes will make to your property.
Although you may want to make changes to add more space or to make it more aesthetically pleasing, the aim of any renovation should be to add value to the home. It’s wise to start with kitchen and bath remodeling since it usually adds more value than updating other areas of the house.
What are the Costs?
Research the prices on all the materials, appliances, cabinets, and other items that you’ll need for your project. Also, familiarize yourself with the costs of installation, labor, and hiring professionals to do some of the work on the renovation.
While you may be able to DIY some of the remodeling, you should seriously consider hiring plumbers, electricians, and contractors to do the skilled work. After they reroute water lines, rewire rooms, and remove walls, you can take over the finish work.
Who Will You Hire?
When you hire a plumber, electrician, or contractor to do work on your house, research your options. Ask people who’ve had renovation work done about who they hired and the quality of the work. Family and friends may have good recommendations as well.
Interview more than one person or one company for the job and ask for detailed estimates of the costs of the job. This information should include the cost of materials, fixtures, installation, and labor.
Get the contract in writing, which, along with costs, should include a time frame for completing the project and their license numbers. Also, make sure the contractors or companies are insured.
Updating your home can be expensive, but it has many advantages. It can ensure the safety of your property and family by replacing old or unsafe wiring.
It can improve the value of your home, especially if you decide to sell it, and the house can reflect your design aesthetic instead of being generic. If you follow these tips, you should be able to find and hire contractors to do the work within the budget you’ve set.