Budgeting for Your Renovation Project
Every project needs a budget. Given all the details imbedded in your goals & objectives, selections and decisions – you really do need a budget. And you need to know how to allocate and categorize the expenditures to maximize your decisions and compromises for the best possible project.
There are several ways to go about the decision of how much to invest. Here are a few of the main topics that drive any budget:
- What are your intentions with the house? Is this a home that you intend to live in for the next 5, 10 or 20 years?
- When is the last time the home was updated? And what condition is the home in?
- Are you preparing your home for sale?
- Are you simply replacing with new or are you reconfiguring the space entirely?
- What can be re-purposed or re-finished instead of tear-out and replace?
- Do you want all environmentally friendly products? Some products carry a much higher price tag while others can be substituted with to fit in any budget.
- Do you want new and functional or are you looking for top-of-the-line?
- What is typical in your neighborhood? Over improving for the neighborhood can be detrimental for future ROI (return on investment)
It is important to decide what you feel comfortable investing in your home and share that information with your contractor so that a plan that fits your needs and lifestyle will be considered from the onset.
For more information on how to control your Remodeling budget, you can read our Blog post here
The budgeting tool below is supplied by Remodeling Magazine. Every year, they query Realtors from around the country about what home improvement projects sell and how much you might anticipate as a return on your investment. Keep in mind that these are average numbers, but it will give you a good idea of what may be included in a particular renovation project and how much you might anticipate spending.