It can be easy to feel overwhelmed as a homeowner when thinking about all of the many renovations and upgrades you think you should be doing. In actuality, some projects are more significant than others. Specifically, think about the return on investment (ROI) and immediate impact. Sometimes home improvements are necessary. However other times there are projects we just want to do to improve our home. Either way, making and sticking to a budget is an essential part of the remodeling project.
Motivated by home renovation TV shows?
Think that it looks easy?
Remember that TV doesn’t show the complete picture…
It does not include the hidden costs, the potential unexpected surprises, nor the complications that can arise from upgrading your home. Things will always be more complicated than expected and there will ALWAYS be unforeseen expenses. So plan to budget for the unexpected.
Keeping Your Home
When you purchase a home, consider the expenses that come along with homeownership. Ongoing repairs, maintenance, and improvements make up a relatively small portion of the overall home budget. However, they might spark larger scale, more expensive home renovation projects.
If you’re trying to budget ahead for things like updates, then the first step would be to figure out how much the project is likely to cost, considering common remodeling projects can be more complicated than you think.
Remodeling upgrades breathe new life into your home as well as improve the functionality and efficiency of your spaces. They can even save homeowners money in the long run. It is not uncommon for costs to get out of control if the homeowner isn’t aware of their remodeling budget. Just over half of all home remodeling projects go over budget and in many cases budget overruns are a fact of life.
According to Steve Zitman, Founder and CEO of Unique Builders and Development, Inc, located in Houston, Texas, the Home Ownership Decree is:
It will always take you longer than you expected and cost more than you anticipated.
To keep your home remodeling project on track, it’s important to anticipate some unexpected costs and issues, such materials, contractors, or damages that might arise mid-project. Keeping your budget on track is crucial if you are watching costs.
Have no doubt, renovation projects always offer up surprises.
Your contractors might find decayed wood or old wiring that needs to be replaced, need special equipment to rectify a problem, or need to call in a specialist to work on part of a job. Hidden costs, such as moving pipes and installing beams, can add up quickly.
Selling Your Home
Although it may be overwhelming to look at your house from a buyer’s perspective, it can give you a fresh outlook to see all of the potential upgrades you could make. An upgraded home sells for more money and quicker than an old fashioned, obsolete house.
With home ownership often comes the desire to make what you have even nicer, hence the necessity for upgrades. Apart from your emergency and maintenance savings, consider managing a budget for nice house upgrades. These upgrades will also make it easier to sell your home.
And if you make a priority list of needed work, you avoid last-minute “fix the house up for sale” most homeowners go through before listing their home.
Prioritize your needs and assess the value of your projects. This helps you make informed choices that help improve your home and your financial outlook. When determining your project cost, take into account:
Whether you intend to upgrade your home to keep or sell, create and maintain a budget. With so many moving pieces, there’s always the potential for something to go wrong… So prepare for the worst but hope for the best.
Special thanks to Carrie Kneisley for writing this blog.
She blogs for many companies, including Unique Builders and Development, Inc, located in Houston, Texas. Unique Builders and Development is a full-service design and building company. They offer a full range of design, architectural, engineering, and construction services committed to fulfilling your vision and creating the home of your dreams.