If you’re feeling inspired to change up your home, taking the time to think about the renovation ahead of time can help you stay on budget. You’ll want to get the most return on your investment, especially if you plan on selling in the future. Before starting any renovation, consider these important factors to help stay within budget.
Is the renovation worth it?
Prior to starting any renovation, you must first determine if it is something that needs to be done, or something you want done. Unless you are planning on staying in your home for several years, a renovation that will add too much value to the home may not give you the return on investment you were hoping for.
Before adding a deck or refinishing a basement, take a look at the structural components of the house. Would that renovation money be better spent on a new roof or windows? If the structure of the house is good, does the kitchen or bathroom need updating? Aside from the initial curb appeal, the kitchen and bathroom is what sells a house, so that is where you are most likely to get the largest return on investment.
What is the budget and how will you pay for it?
Renovations can turn into an endless cycle of overspending if you don’t set a strict budget ahead of time. Decide exactly how much you can afford prior to starting the work and then make a commitment to stick to it. Surprises may come up during the renovation, so be sure to leave a little room within the budget for any unexpected repairs. Once you’ve set a budget, determine how you will pay for everything. If savings aren’t available, consider a home equity line of credit, bank loan, or low-interest credit card.
Who will perform the work?
The best way to stay within budget is to do as much work as possible yourself. Labor costs eat up more of a renovation budget than materials do. Mistakes can end up costing double the materials, though, so be sure you are knowledgeable on how to perform the work prior to starting it. For skilled labor like electrical, plumbing, or carpentry, you may want to consider hiring a licensed contractor.