Deciding to remodel parts of your house is a big decision and requires time and thought. First, you need to figure out your budget to determine how much you can afford to get done. The next thing you’ll need to do is determine what you want from what you need. Once you know what you need, then you can see how much of the budget is left for some extra things you may want. Most home renovations end up costing more than originally thought so you need to ensure you have the extra cushion on the budget for any emergencies you may run into. For tips on budgeting for your next home renovation, read below to hear from some of the expert CREC team.
Needs Versus Wants
The first order of business is to determine your exact budget, so you know how much you are financially able to do. This will determine how much of the house can be remodeled or how extravagant you can make a single area remodel, such as a kitchen. Next is to look at your needs versus your wants. Once you establish all the needs and figure out the budget for that, you can look at some fun additions you may want with any left-over budget. Perhaps you are renovating your kitchen and you know your top priority is the need for all new appliances, you should look at the pricing for those first and then maybe look into something such as new flooring after you have squared away your top priority.
Next, be sure to look at the cost versus the value of each thing you decide to renovate. Ask yourself, will this increase the value of my home? Explore options that will increase the value of the property so when it is time to sell you can make more than you have originally bought it for. There is no reason to pour a huge amount of money into a renovation that won’t be increasing the value of your home. You can research what is more desired in houses in that year to see what will be of value to you. So far in 2021 the most valuable home improvement projects include minor bathroom and kitchen remodels, adding a backyard deck, replacing the siding to just getting a new paint job for the exterior. All of these have lasting impacts on the value of your home.
The hard part of this renovation is figuring out how you will finance it. Take a look at your finances and discuss some of the options, such as taking out a home equity loan or a line of credit from the bank. The other option is using a credit card as long as you are sure you will be able to pay it off and assuming you have a good credit score. Another option is to discuss with friends or family who have gone through similar renovations to discuss their experiences. This way you can see how others financed it and get a perspective on what may work for you.
Another important step not to miss is making sure you get quotes/estimates from multiple contractors to compare to ensure you are getting the best price and quality for your job. This is another scenario where you can ask others in your area who have gone through similar renovations for companies they used and how they liked them. Once you compile a list of everything you want to be done and any specific brands you may want to use, you can contact multiple contractors to get some estimates on how much it will cost you. This is a great way to ensure you are getting the best price for the job you require. Then you will be able to find certain areas to cut costs in if possible to get the price to where you need it.
Renovating your home may be a stressful task for most, but it is well worth it in the end. The Charleston housing market is booming right now and home renovations are what takes our properties to the next step.