Have you been thinking about remodeling your home but don't know where to start? Does the idea of planning the budget for your home improvement projects bring you joy but scare you at the same time? If so, then you have come to the right place. Today, we are going to talk about budget planning and we'll also learn some tips that can save you money and time. Let's get started!
You WILL Break The Budget So Plan Ahead
Most home remodel projects go over budget. This is a simple fact. It is almost impossible to foresee what is going to happen during construction. There are many reasons for going over budget. But instead of blaming the contractor for adding to the cost of your home improvement project, why not plan ahead? There are several things that you can do to try to stay as close to your budget as possible. It is also a wise move to add a little extra padding to the overall project cost. This will help pay for the unexpected costs and keep your project from shutting down before it is finished. It is better to have more money leftover than to be cut short.
It is never a good idea to go with the first contractor you find. While he or she might be the right person for the job, you need to look at all your options. Before you award the job to someone, make sure that you check with at least five local contractors. This will allow you to get the best possible price. By speaking with several contractors, you can come up with an average price which is fair for both you and your future contractor. Also, remember that if the price is not right, you don't have to hire them.
Don't Hire Cheap Labor
When budgeting for your home improvement project, it is tempting to hire the cheapest labor you can find. But going cheap might end up biting you in the budget. Cheap labor often means that the person doing the job doesn't have the proper training or skills to handle home remodels. They often cut corners and many times their heart really isn't in what they are doing. For example, if your home house has mold problems, then phone a company that are expert and knows what they are doing instead of just going for the cheap, run-of-the-mill service. When this happens, the work that is done in your home might not be up to standards and sometimes will cause health risks to your loved ones. This means you will likely have to hire someone to fix the issues. That alone will drive up the cost of your project by hundreds and maybe even thousands of dollars.
Add Some Luxury For Less
We all want our homes to have some luxury features. But many of us simply don't have the money to go all in on luxury. Instead of breaking your budget on lots of upgraded features, why not add some simple luxury to your home? For example, instead of ripping out all of your kitchen cabinets and replacing them with new ones, why not try painting your cabinets and replacing the hardware? it will give your kitchen a luxurious look without breaking the bank. Instead of installing that slab of stone or expensive tiles in your bathroom, consider a solid surface shower upgrade — it's more durable and affordable while giving the appearance of natural stone. Remember that smart changes like these can go a long way if you do them right.
Do Some of The Work Yourself
When planning for your remodeling budget and you run into funding issues, why not take matters in your own hands? There are several different things that you can do to bring down the cost of your home improvement project. For example, most people can paint. So why not get out the paint brush and do all of the painting yourself? This will save you big on labor and the money you save can be used in other areas of the home. You can also do other things in your home to save money. So before you start your remodeling project, sit down and figure out what jobs you are willing to do. This will not only save you money, but it will give you a real feeling of accomplishment!
Now that we have learned a few tips on how to make your home improvement project go smoothly, let's talk about funding. Below are a few funding sources that can help get your project started:
A Home Equity Line of Credit
A great funding option that many homeowners take advantage of is a home equity line of credit or HELOC. If you have enough equity built up in your home, you can borrow against it. For those who own their homes outright, you can qualify for even more. Most lenders will allow homeowners to borrow up to 80% of the total home's value. This is a great way to fund your next remodeling project which will add even more value to your home.
A Renovation Loan
Another funding source that you may want to explore is a home Renovation loan. The Federal Housing Administration offers a home renovation loan that help owners realize their dreams of a better home. This loan is known as a 203(K) and is fairly easy to get. The great thing about the 203(K) is that it allows homeowners to borrow on the future value of the home. So if you’re don't have a lot of equity built up in your home, this just might be one of the best options for you.
A Personal Loan
For smaller home improvement project, you could use a personal loan for funding. If you have good credit, you can get a loan with a low interest rate. These loans can be found at many local banks and credit unions. By working with a smaller hometown bank, you can often find great deals on loans which will save you money.
As you can see, there are several things that you can do to plan for your home improvement budget. By planning ahead, you will save a lot of time and money. Remember that you have several funding options on the table. If you dream of upgrading your home, then now is your chance to do so. Get out there and give your home the face lift it deserves!