How to Budget a
Home Remodeling Project
These days most people consider home improvement projects a good investment. With the rising costs of homes across the country, the average homeowner is perfectly willing to put money into improving their house with the expectation that they will make their money back, or possibly turn a profit, when the house is sold. All too often, however, a simple remodeling project turns into an expensive overhaul that goes far beyond the initial budget. Here are some tips for making sure your remodel goes as originally planned:
- Clearly define what you want to do – Many homeowners start a remodeling project by decided the part of the house they want to remodel, then calling a contractor over to iron out the details. Rest assured, the contractor will have as many grand (and expensive) ideas as you ask from him. It’s important to figure out specifically what you want to do before calling a contractor. Not sure what you want to do to a room? Search the net for ideas – there are countless sites dedicated to home remodeling ideas.
- Separate remodeling money from personal money – The best way to avoid the lure of that granite countertop or cherry wood cabinets when you don’t really have the money for them is to actually save up the money and keep it in a separate account or location. Make a rule that you may only pay for remodeling from this money.
- When making choices keep resale in mind – Keeping a strict budget will almost certainly require you to make some decisions on what you can and can’t afford. When deciding what to cut and what to keep, always lean toward the improvements that will increase the overall resale value of the house. For example, heated bathroom floors are a selling point for a home, while an elaborate vintage vanity is probably not. Try to imagine a short classified ad for your house – is the new improvement something that you would mention? If not, it may be something you could consider not doing immediately.
The bottom line when you budget a home remodeling project is to strictly control the money being spent by controlling the project itself. By limiting the project to just those items that give you the biggest bang for the buck, the project will not only be an enjoyable upgrade, but also a profitable investment as well.
By Joel Carlson
