BUDGET TIPS FOR YOUR HOME RENOVATION
These are interesting times to say the least! I do not know a single person who did not do some type of home improvement or renovation to their home in the last 12 months. I suspect that trend will continue strong this year. Whether the project is small like closet organization or a new bathroom, or a large new addition, it all starts with your ideas and a rough budget. One of the biggest line items in a project is labor. Consider the cost of doing it yourself versus hiring a professional to complete the work. The size and scope of the project, your comfort level, and, often times, your sense of adventure are some of the determining factors in which direction to go.
These budget tips apply regardless of which direction you choose. Let’s start with ideas. Are you looking for more physical space or organizing and maximizing the efficiency of your current space? Is this your “forever home,” the home you love right now, or the home you want to improve to sell? Determine the cost versus the value of the project from the questions above. Would you update the kitchen to sell your home for roughly the same amount as before the renovation was done? Have a 10 to 20% contingency fund available. There is no way of knowing what is behind the walls before opening them up or tearing them down. Correcting outdated and out of code-compliance with plumbing and electrical can add hidden costs to a project.
Stick to your investment budget! This is a substantial investment so beware of red flags. When you get at least three bids — and you should — review the details of each quote. If one quote is not even close to the others, higher or lower, it should be cause for concern. The more you communicate with your contractor, the more accurate the bid. Know where you can make sacrifices. Identify your “must haves” and be willing to give on things not as important, and make material and design choices accordingly. Beware of any additional tax burden. When filing for permits, the cost of the project is always requested, in part, to determine if there is an increase in the assessed value of your home for property taxes. That increase usually never goes away.
Do your homework, plan in advance, and be a savvy investor!