If you’ve been living in your home for a while and are keen to renovate it, or if you’ve just moved in but can’t wait to do up your property, it’s important to not let yourself get too carried away with the remodeling work. While freshening up spaces can make your house feel more livable, modern and beautiful, while helping you to rent or sell it for a higher price, you don’t want to invest so much that you overcapitalize. To help you perform a sensible remodel that avoids totally emptying out your bank account, read on for some tips.
Set a Budget
The first thing to do to ensure you don’t end up with a low bank account balance is set a budget for the renovation work. By deciding on a figure up front, before you begin remodeling, you will find it easier to keep to an amount you feel comfortable with.
When setting a budget, break down the renovation expenses into the different areas work falls into, such as home warranty costs, labor, materials, financing fees, insurances and the like. Make sure you factor in every fee possible, so that your budget is realistic.
Design a Plan for the Work
Next, it helps if you also take the time to design a plan for your remodeling work. Again, before you start outlaying any funds or knocking down walls or hiring builders, plan out the whole renovation so you know in what order the different tasks need to be completed and by whom.
When you’re proactive about creating this plan, you’ll typically find the remodel goes more smoothly. In addition, you should save time, money and stress because you’ll get the right people in to do work in the right order and won’t have issues with materials not arriving on time and so on. Planning helps you to be, and feel, more in control as the renovation processes.
Get Clear on What Will Actually Add Value to Your Home
Another vital step is to get clear on what will actually add value to your home. After all, there’s no point outlaying a lot of money into remodels if what you do doesn’t actually give you a financial win, investment-wise, and instead simply drains your bank account.
Before work begins, research what buyers in your suburb look for in properties. Some features and upgrades will be appealing to them, and some won’t, and could therefore be a waste of money. You need to work out the types of buyers who may, when you’re eventually ready to sell, be interested in your property and what it is that will be most of value to them. Buyers could be singles, couples, families, retirees, professionals or other occupants.
Research recent sales in your area, speak with real estate agents, and attend open homes and auctions to get a good feel for what features different properties have and what they end up selling for (and how quickly). You may find, for instance, that purchasers are particularly interested in the property having a pool, a large amount of bedrooms, lots of storage or a separate office or mother-in-law flat. People may want a lot of technological gadgetry and high-end fittings and fixtures or be particularly interested in homes with interesting period and architectural details.
Save Money on the Work Itself
Lastly, keep your bank account balance in good shape by saving money on the renovation work itself. That is, concentrate on ways to cut costs on both materials and labor. For example, you may be able to do certain jobs yourself, such as painting and demolition, or you could have friends or family members who are experienced electricians, plumbers or handy in other ways help you out.
If this kind of in-house work isn’t an option, and you have to hire contractors and/or builders, do so carefully. Research options and speak with the past clients to find out if they were happy with the work. Get a firm quote in writing, so you won’t get stung by increasing prices. Ensure every person you hire is suitably licensed, too.
When it comes to the appliances and other materials used in your remodeling work, you may also be able to reduce expenses. For instance, see if you can re-use any items already found within the property or pick up materials at a cheaper price at auctions, garage sales, during retail sales or through other channels. In addition, work to keep windows, doors, cupboards and the like at standard sizings. This way, you will be able to use generic fixtures and fittings instead of having to pay extra for customized ones.