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Home Renovation: Tips on setting the right budget

Everyone knows how stressful the home renovation process can be – but it doesn’t have to be. Escape the trap of going overboard on your time and budget by planning your renovation properly.

Check out these helpful tips in creating a budget for home renovations that will save you time, money, and stress.

Figure out how much you can afford

When creating a home renovation budget, always start by finding out how much you can afford and how you’re going to finance the project. Some people use their savings while others finance their renovations by using their credit card, taking out a loan, or applying for a home equity line of credit.

Once you’ve figured out how you’re financing your renovation, set a price limit. Doing so will help you narrow down your options so you can allocate your budget accordingly.

Know what you want then prioritize

Know exactly what you want for the home renovation you’re planning. You can do that by creating a list of things you want to see in your home. Figure out the things you can compromise on and things you can’t live without. List these according to priority, and put down the specifics for each item.

The list you created is meant for you to keep your plans in check and to avoid the tendency to change your mind constantly. This is especially true for the bigger changes you want for your home.

Create a renovation plan

A renovation plan will give you a clear idea regarding the cost of materials and help you better explain what you want to your contractor. This, in turn, will give the contractor a better idea on how to properly execute the renovation.

There’s a lot of work that goes into a good renovation plan. You have to look up the estimated cost of each item including shipping. Information like that could be easily found online. You could also ask local hardware stores for a more accurate estimate.

Get quotes from multiple contractors

It is best to contact more than one contractor when getting a quote. Each contractor will have their own rates for the task at hand. In doing so, you get a better grasp of your renovation’s general cost.

Don’t always go for the contractor with the lowest quote. Before settling with one contractor, research on other aspects of the contractors you’re considering. Check reviews, references, previous work, credentials, and the like. Test your potential contractors on their willingness to negotiate on the specifics of your home renovation. The bottom line is this: the best contractor to work with is one with a background of doing quality work who gives you a reasonable quote.

Set aside some extra money

After you’ve chosen a contractor and determined the costs, always add 15% to 20% to the estimate as a safety net for any unforeseen issues. If adding a safety net to your estimate puts it out of your budget range, consider scaling down your project.

For more home renovation tips and information about home values, get in touch with the Lady of the Lake Team. Let us help you explore your real estate options in Lake Conroe and Montgomery County. Give us a call today at 936-525-0095 or send us an email at Katherine(at)lakeconroe(dotted)com.