Home Remodeling on a Budget
Home remodeling is one of the best things you can do for your home, both inside and out. Not only will it give you a fresh new space to enjoy, but it can also raise your home’s value significantly.
But before you begin renovating, it’s essential to make sure you’re on a realistic budget. Otherwise, you could end up wasting time and money.
First, get an accurate cost estimate for your renovation from at least three of the best home remodeling company near you. Compare their bids against each other and then choose the one that fits into your budget.
Contractors typically quote their costs based on the materials and labor needed for your project. If they quote a lower cost than you expect, you can ask them to provide more materials, or negotiate on the price for specific items you’d like.
You can also try to find low-cost materials by shopping around and comparing prices. However, be sure to communicate your plan with your contractor and make sure any changes you want to make to your budget are covered in their initial proposal.
If you have a clear vision of what you’d like to do for your home, it’s easier to stick to a realistic budget. It’s also a good idea to separate the project into wants and needs.
Once you’ve done this, take a look at the list and see which items are must-haves and which you can drop from your remodel. This will help you decide which aspects of your project you can actually afford and what parts are better left to the professionals.
For example, if your kitchen renovation includes a new quartz countertop, you can probably get by with laminate countertops for a much cheaper price than granite.
You’ll also save a significant amount of money by painting your own home instead of having a professional do it. This can save you up to $300 or more for a paint job.
Don’t forget to factor in unforeseen expenses as well, so plan for at least 20% extra over the projected cost of your project. This will allow you to deal with any unexpected problems that arise during the renovation process.
If you’re ready to start your home renovation, consider using a home equity loan or line of credit (HELOC). This allows you to borrow against the equity in your home and pay it back over time with a reduced monthly mortgage payment.
Another option is to refinance your mortgage. This may lower your interest rate, and you can use the money you’re saving for your renovation as part of the loan.
The most common reason home renovations exceed projected costs is due to changes made during the project. Changes can be minor or major, so it’s important to discuss them with your general contractor before you start the project.
You can also cut costs by working with a home improvement lender to create a renovation loan. This type of financing doesn’t require collateral or home equity, and you can receive the funds you need within a day.