Most of us don’t stick to our shopping budget. However, it’s crucial for one to follow the budget closely when making a great home improvement project. The strategy and criteria for remodeling a great home require the establishment of a spending limit.
Home Improvement Article Sponsored by: Accounting Consultant Frisco
The following are the steps to follow in making a budget for renovating a big home:
Know Your Goals
You should know the reason you want to renovate the home. Whether its more space you need in your kitchen, space for entertaining or serving guests. Figure out your goal which will then help you have the budget for the work.
Prioritize Your Goals
Before the work of renovating starts, pin down all decisions available and select the furnishings and materials needed. This involves listing all the requirements needed to help in formulating an achievable budget.
Assess The Financial Options
You need to know how much you have for the renovation. Use cash or opt for a loan. You can borrow and use the equity you have in your home as security.
Consider The Resale Value of Your Home
A home is an investment if you are going to stay for a while and sell it later. In that case, the potential return should be considered after the resale of the investment. Consider the resale amount in the future by focusing on the potential return of your investment. But it is not necessary if you want it to be your dream home. The cost of improving the house should be compared with the actual value of the house. However, some renovations can add value to your house than others.
Get The ”Hard Quote”
You will pay for a ”hard” quote for a detailed outline for the project through some contractors will give an estimate of all the requirements and the cost associated with the renovation. Stick to the budget for you will be able to sign a contract with a fixed price where you will be required to pay the contractor some set lump sum for the renovation upfront.
Put Aside Money For Surprises
There are probably some hidden expenses that will arise as the project progresses. Therefore, it is important to set aside some money to cater for these expenses. Around 10% to 15% of the budgeted amount is enough for this purpose. But if you can’t use this amount set aside, then put it toward the furnishings.
Learn How To Cut Costs
Learn ways of trimming your budget without compromising the quality of the work and the materials. The following are ways you can use to cut costs:
- Watch out for the lower cost finishings. Choose alternative finishings. For instance, you should go for vinyl flooring instead of tile.
- Older items should be refurbished instead if buying new ones. Examples are home appliances and cabinets.
- Labor costs should be minimized by doing some work alone like painting a room and removing floor tiles.
- Timing. A time when to do the renovation because some other times are good than others for certain projects.
- Don’t add things on the way. These change orders are expensive because they were not part of the plan.
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