Many families save for years in order to renovate the kitchen or bathroom, and this takes a major budget commitment. As a planned cost, however, these projects can be successfully managed – it’s when costs run over or homeowners get overzealous, adding unnecessary extras, that simple renovations can turn into months long projects.
In order to avoid big cost overruns, you should work as a family to assess what you want out of your renovation, what things you’re willing to pay extra for, and where you need to draw a firm line for your family’s financial well being. While every family has different priorities, experienced builders suggest the following 3 guidelines.
Paying a little extra for energy saving measures is one of the smartest ways to allocate spending because these features will pay for themselves over time. This includes properly sealing all ductwork, replacing appliances with high-efficiency models, and fully insulating basements and attics. Making these changes will reduce your energy bill significantly.
Have A Plan
What you spend money on when renovating your home, should directly reflect your use intentions. That means, if you have young children, but don’t intend to move any time soon, adding another bedroom or installing a pool are likely good ideas – these are things that will get lots of use with kids around.
On the other hand, if you’re planning to sell your home and these upgrades are meant to increase the value, look not just at how much added value a particular renovation can offer, but what the ROI is. Some investments will add value, but you’ll have poured too much money into them in the first place. Stick with simple things like installing a wood deck at 75% ROI or try remodeling the basement, for 70% ROI. These are great investments if selling the home is in your near future.
Smart homes are the wave of the future, and because many of the devices, like smart surveillance, need to be wired directly into the home, during a renovation is the best time to add them. Moisture and humidity sensors are also worth the extra expense because they can help you avoid damage – you may not be able to see a leak, but your sensors know it’s there.
Other smart home tools like the new thermostats that recognize when you’re at home and calculate factors like humidity into their cooling plans are also great and feed into recommendation one – they’re intended to make your home more eco-friendly. They’re also reasonably inexpensive compared to other smart home tools, so if you’re just dipping your toe in, thermostats are a good place to start.
Ultimately, whatever your home renovation budget, you should remember that these extras will be on top of extras – no one’s budget is ever quite right, but rather the estimated costs are always too little. Expect to pay more than you planned and don’t embark on a project with “just enough” in the budget or you’ll end up draining your personal savings.
Categories: Real Estate