Whether you want to make your house shine for sale, or you have just bought it and want to look like a brand new one, the reasons for renovating a house can vary.
Maybe you need better space functionality, a new roof or you just want it to be much nicer. A renovation is a project that is considered twice before you get into the whole story. Very often home renovations can increase the value of your property. Also, occasional investments can prevent bigger accidents and therefore bigger spendings.
Turning ideas into reality is very often tricky when you realize how much money you need for this project. Change is great, sometimes necessary, but can your budget handle it? It is of great importance that before you embark on this adventure, you ask yourself if you can afford it all and how you can potentially reduce costs. These few hours that you will dedicate to planning the budget for renovations can help you for later.
Remember: no matter how good and how long you plan to start the renovating, believe us that you will have additional costs that you did not count on. If, however, you do not have experience with home renovation and you are not quite sure about preparing a budget plan, there are professionals who will do it for you.
If you still think you can do it yourself, get ready for the 5 budgeting tips for your house remodeling project that you could follow.
1. Set priorities at the very top of the list
As we have already mentioned, by renovating we assume that you want to solve some problems, or better said the needs you have. Well, this is where'' the most important thing on the list is located and that’s for sure budget planning.
Set priorities first, then be sure to write them down. If you have more details in your head, think again about what you need more. For example, you want to completely renovate your kitchen so that you want more space, a larger dining area, a bigger kitchen island and new elements because these are worn out. At the top of the list will certainly be more space (maybe demolition of a partition wall or replacement of elements and layout), then the next item is a kitchen island (built or mobile of plywood, as it fits your needs), and only at the end of the list will be purchase and replacement techniques. Very simple process, right?
If you run out of money, it is important that you have done crucial things and your kitchen can function for a longer period with the old technology, which can be changed later on. It would be a bad decision to buy appliances first, after which you would realize that you don’t have enough money to increase the kitchen. So, everything that is not necessary goes to the bottom of the list, which does not mean that it won’t see the daylight.
2. Analyze whether and how much renovation increases the value of your home
This may seem useless to you if you plan to live in the same house for a long time, but you never know what tomorrow brings. Every renovation project should be profitable, in other words, to raise the value of the property at least as much as you have invested in it. You may not get your money back immediately, but you will be able to rent out a house or apartment at a higher price, sell much better, or still take out a much larger mortgage loan. This should be taken into account.
Projects that raise the price of ownership include renovation of the bathroom or kitchen; garage door replacement; installing stone fireplace; replacement of windows or doors; reconstruction of roof and facade, etc.
3. Once you have set priorities, it is time for a quick assessment
We always suggest that if you have no previous experience or are unsure of your assessment, consult about it with professionals. There are always some additional works that you as a layman may not have been referred to, and they will know to point that out for you. For example, if we are expanding a kitchen by tearing down one wall, you may not know that there are certain pipes in it that need to be packed into the floor, which are additional costs.
Whether you are judging on your own or with someone’s help, take a pen and paper and write down every job that awaits you, every purchase you have planned and every craftsman that needs to be paid. Include waste disposal, transportation and similar details. List everything because it will be your guide for the next, most important advice.
4. Detailed analysis
This is the hardest part, after that, you will have an idea of whether you can really do it or not. You have already written on the list every item you need, work that needs to be done and procurement. Now ask for each of these items how much they will cost you. Don’t cut prices even if you know you’re going to get a certain discount. Let everything you save later be like an extra shortcoming if it lasts until the end. Check the list once more, patiently and diligently.
We suggest that you consult with experts in this section as well, or at least with a friend who recently has this kind of renovation. They will give you another more realistic look at the whole process. Underline this list and the sum will give you the final number. Now you know very well whether you will be able to do everything from the list of priorities or just necessary things could be done. If this is an amount that is acceptable to you, congratulations and good luck with your work!
5. How to get the finance
The final figure from the red list will only make a small number of people happy. Mostly it is the one that creates headaches and throws you into a new way of thinking: how to make money for all that you have in mind. If you have your own savings either in cash or cards, the most common solution is a cash loan, equity loan or credit.
Think carefully about each option. Patience is also needed here because the wrong choice can cost you extra. Talk to others who have renovated their homes, how they got their finances, maybe they are giving you a whole new idea.
Hope we’ll help you to organize yourself in this important decision you made. Don’t forget- the time is money so use every moment thoughtfully and plan every detail in advance.