5 Tips for Creating a Home Renovation Budget

Here are five things to keep in mind if you’re planning to renovate your home.

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If you’re thinking of renovating a space in your home, here are five things to keep in mind that will help you establish a budget to accomplish your renovation goals:

1. Home renovation costs. As a general rule of thumb, the home renovation cost should be determined by the space in question’s percentage of the home’s value. For example, if you’re working on the kitchen and the kitchen is 10% to 15% of your home, then it should cost 10% to 15% of your home’s total value. Contact us here at Madden Real Estate; we’ll do a CMA to determine the value of your home so you can look at how much a particular renovation would cost. We can also help guide you through setting up a budget for that project.

2. Home remodeling loans. If you’re looking at a big expenditure for a particular remodel, a home remodeling loan is definitely an option you can pursue. For example, if you’re going to remodel a kitchen in a $200,000 home, you’re looking at about a $30,000 project. If you don’t have the cash on hand, it may be smart to meet with your lender or with us. We can help you refinance, get a home equity loan, or pursue another financing option.

3. Get a quote from a contractor. We never want you to get just one quote—get at least a few from different contractors and throw the lowest one out. You don’t want the lowest bid to do your home repairs because they may cut corners, potentially costing you money and time. The worst thing is having a contractor tell you that they’ll have a project done in 30 days, only for it to take four months. The more detailed the quotes are and the more time and effort they’ll put into your projects, the more value you’ll see from the finished product.

As a general rule of thumb, the home renovation cost should be determined by the space in question’s percentage of the home’s value.

4. Stick to your plan. As a remodeling project goes underway, many people like to add on little projects along the way. If you’re planning to remodel the kitchen, for example, stick to that project for now.

5. Hidden home renovation costs. These are why you should stick to your remodel plan—especially if you have an older home, you’ll likely find other things you want to tackle as a project progresses. These other projects will cost money, of course; if they’re necessary repairs, it’s smart to set aside an extra 10% to 20% to account for any unexpected repairs. You’ll be happier in the end if you do.

If you have any questions about home renovations or about finding reliable, quality contractors to help you with your projects, don’t hesitate to reach out to us. We’d love to help you.

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