Tips for Creating a Budget for Your Renovation Project

Your home renovation project is a way for you to make your home more personalized and to update anything that is aging. When you are starting your renovation, you will want to create a budget. To start planning your budget consider the material and labor costs, know where to spend the most, and know your maximum.

Consider Material and Labor Costs

The cost of materials and labor for your home renovation project will depend on the scope of your renovation. If your renovation is broad in scope, it may require many subcontractors for the various parts. If you decide to hire a contractor you will end up paying fees for that at around 10-20% of the total cost of the project. The materials themselves cost you money and will depend on what you choose. Quality of materials may cost you more but can be worth it because they last and will help your resale value.

Know Where to Spend the Most

While having a whole new home is an exciting thought, not all parts of your home renovation have equal return on investment. Especially if you have a lower budget, you will want to focus on the rooms that will have the greatest return. The kitchen should be among the first you renovate. This is a space that is high traffic and is a major selling point. The living room is another sought-after room. Investing in your living room can make your home more attractive to buyers.

Know Your Maximum

When doing a home renovation, you need to consider the maximum amount of money you want to spend on the project. This will help you decide what to renovate and the quality of the materials. The maximum amount of money you should spend will depend on the value of your home. You shouldn’t spend more than 10-15% of the value of your home on home remodel projects because you are unlikely to get a return on the investment at amounts greater. Once you know the maximum cost you can spend, and an estimate for your renovation you can determine how you will finance the project.

Whether you are looking to sell or looking to stay in your home, renovations are beneficial. It lets your house become your own. If you plan your renovations correctly and spend your money wisely it can also attract buyers and give a good return on investment.

Check out this article on home additions you should think twice about!