Planning a home remodel in the near future?
It’s a good idea to know how much your home renovation will cost before you start picking out paint and tiles.
Looking to re-do your kitchen? Excited about upgrading your bathroom? You already know what you want to renovate and why – whether it is because you are keeping up with a growing family, adding office space, increasing your homes value, or just because you want something new.
The hard part is figuring out how to do these renovations without emptying your bank account. Here are five essential steps in planning for your home renovation project.
Financial Considerations When Remodeling Your Home
Cost Estimation: To start off, you should get an approximate value of your home. In general, you should know the value of your home and spend no more on each room needing renovations than the value of that room as a percentage of the overall home.
Here is an example.
A kitchen normally accounts for 10% to 15% of the home’s value, so spend no more than this on its renovation. If your home is worth $150,000, for example, you will want to spend no more than $22,500. Keeping in mind that contrary to popular belief, renovating a kitchen offers the lowest return on investment, according to recent studies. The value of your home is only increased 50¢ for every dollar you spend on a new kitchen. A mid-range bathroom renovation would return the highest investment of interior remodeling.
Loan Option Considerations: If you have decided to borrow money for a renovation, you should think about how much the bank will lend you, making sure you determine what type of loan will work best for your situation. For example, if your project is a one-time deal, a home equity loan might be the choice for you. On the other hand, if you are planning on multiple renovations that will take place over a long period of time, you will need to be able to access money throughout the time period, In this case, a home equity line of credit may be right for you.
Get Contractors’ Quotes: Many contractors will give you a ballpark cost based quote on what work they may think you want accomplished. But keep in mind this is an estimate only, and any work that is completed under these conditions is almost always certain to cost you more. These estimated costs are for planning and comparison only.
These steps will bring you to the point of actually getting a contract and starting the work. We’ll cover the financial aspects of this in Part 2.
Window Outfitters, Inc. is a licensed MN exterior home improvement contractor serving the Minneapolis metro area. We strive to provide the utmost in customer service, and we”ll work with you to stay on budget and choose the materials that work with your financial situation. Give us a call today for a free no-obligation estimate if it’s time for replacement windows, exterior doors, siding, and other exterior home remodeling.
Window Outfitters is a premier Window Replacement, doors, siding contractor and installer. As Contractor in the St Paul, Minneapolis, (Twin Cities) Minnesota (MN) metro, we proudly serve, but are not limited to, the following areas: Minneapolis Energy Efficient Vinyl Windows, Replacement Window Contractors Minnesota, Burnsville, Apple Valley, Lakeville, Savage, Bloomington, Edina, Richfield, Eagan, St Paul, Hastings, Minnetonka, Plymouth, Maple Grove, Eden Prairie, Farmington MN, Chaska, Shakopee, Chanhassen, Victoria, Mendota Heights Anderson Windows Minneapolis, Marvin Windows Minneapolis.
