Tuesday, September 21, 2021 / by Carol Glover
Renovating a home can be an all-consuming process, and whether you want to increase the value of your home or just your enjoyment of it, you need to know how to spend your money wisely. Figuring out how much time it will take, and the overall costs of the renovation are just some of the things that you need to consider. Many homeowners get caught up in the excitement of choosing finishes or blindsided by an increase in costs due to unforeseen circumstances. At the end of the day, you want to make sure that you set boundaries and guidelines for your entire renovation process. Here are some tips to help ensure that you’re spending wisely on your home renovation project.
What Brings in the Most ROI
Before you even start, determine what will bring the most return on your investment. While you may not be planning to renovate your home because you’re placing it on the market, it’s a good idea to think about the future and how these renovations will be beneficial in the future. Determining cost vs value will help you put your money where it’s needed. Researching which areas of a house retain the most value over the years would be a great start. For instance, kitchen renovations usually see a large return on investment because it’s one of the focal points of a home. In doing so, you can ensure that you will be making the money you put into the remodeling project back down the road, should you decide to sell.
Work with a Trusted Real Estate Broker
By enlisting the help of a trusted broker, you can save time and money by getting focused on options. Here at The Salzman Real Estate Team, we help clients make informed decisions on what to change and how to squeeze the most out of renovation dollars. They can act as the first line of information and will help you find the right contractors, materials, technical evaluations, and more. Carol Glover and Dave Salzman have completed over 190 of their own projects and countless renovations for their clients. And even if you’re not planning on selling your home right now, a brokerage can provide you with great ways to maximize the resale value of a home in the future.
Prioritize Needs vs Wants
It may be nice to have that custom walk-in closet, do you really need it? Stick to the notion that some improvements are better than none at all. Make a list of things that need to be updated in your home, and what can be “refreshed” rather than “remodeled. Now, sometimes you will have areas that need to be completely reworked from the ground up, but by refreshing other areas of the house, you save money in the long run. If you have to completely gut one area of your home, consider updating finishes and fixtures in another. By prioritizing your needs versus your wants, you can ensure that you stay within your budget.
Create a Budget and Stick to It
Whenever you decide to spend money on your renovation, it’s a good idea to know how much of your money is allotted for the purchase of materials, possible contractor fees, demolition work, construction, and much more. It’s always a good idea to plan for unexpected expenses and save up to 10-15% of your budget for flexible spending. Start with a specific dollar amount, and then begin to price out different materials and possible labor fees in order to get a good idea of how far your budget can stretch. Once you have a general idea of how much money you have to spend (and where that money is coming from), you should be able to make better decisions on renovation features.
Know When to Call in the Pros
While it may be cost-effective to do some of the work yourself, you should know when to call in the professionals. If you try to start a project and don’t have the know-how/experience, you may wind up making the situation worse, and end up spending more money to fix a problem you made. And projects involving electrical work, gas lines, plumbing, and anything else that poses a risk to you or your home, should always be done by a professional. When hiring a contractor make sure that they are reliable and have a positive track record of quality work. To keep costs down, interview multiple people and see who can do quality work for the best price. Lastly, make sure that any contract you sign includes estimates, deadlines, and the materials to be used, and don’t be afraid to update it in writing if any project details change.
Your renovation project can be one of the most exciting and trying times of your life, and you want to make it as stress-free as possible. The best advice is to know what you want in your home and plan accordingly. Don’t go crazy and exceed your budget by too much, and remember that it’s always possible to create some beautiful renovations without overspending.