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, you should be thinking about the return on investment (ROI) and immediate impact. Sometimes home improvements are necessary and sometimes 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.
If you’re motivated by home renovation TV shows and 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, it’s important to consider the expenses that come along with homeownership. Ongoing repairs, maintenance, and improvements make up a relatively small portion of the overall home budget, but 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 will sell for more money and quicker than a home that’s seen as old-fashioned, or obsolete. With home ownership often comes the desire to make what you have even nicer, hence the necessity for upgrades. Apart from your savings for emergencies and home maintenance, another budget that should be considered is the one for nice upgrades. These upgrades will also make it easier to sell your home. And if you make a priority list of what needs to be done, you’ll avoid the last-minute “fix the house up for sale” most homeowners go through before listing their home.
By prioritizing your needs and assessing the value of your projects, you can make informed choices that may help improve your home, as well as your financial outlook. When determining what your project will cost, take into account the costs of labor, tools and equipment, materials, permits, and cleanup.
Whether you intend to upgrade your home to keep or sell, remember that creating and maintaining a budget is key. With so much going on there’s always the potential for something to go wrong…unexpected expenses you probably didn’t allow for in your budget, 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.