If you’re getting ready to do a home renovation, don’t just haphazardly start making purchases. Hire a contractor and figure out a budget together to make it worth your while. There are many reasons why renovating without a budget is bad for you, as well as your home. Here are some of the main things to consider.
Making Choices Without a Limit Can Hurt Your Wallet
No remodeling budget is infinite, so it’s important to know what your price range is for each aspect of your remodel. If you start throwing money out haphazardly for every single feature and design choice, things can get pricey. Sticking to a specific budget can help you keep the cost lower and make choices that feature your style and needs without sticker shock.
Costly Choices in the Beginning Could Take Away From Necessary Features Later
While it’s okay to have a list of must-haves, each item needs to have an allotment in the budget. Going too far with one item will necessarily take away from everything else. You may want to have the highest-end appliances money can buy. But buying them would end up taking up half of the budget before anything else is done. Set limits that make sense for each portion of the budget. Your contractor can help you make sensible choices in this area.
Going Over Budget Is Bad For Your Home’s Value
Depending on the neighborhood you live in, going overboard on a remodel doesn’t help your home’s overall value in the long run. The percentage of your remodel budget shouldn’t be more than the value of your home. In fact, it should stay around 25%, depending on the type of renovation. Going over that can actually hurt your home’s value. The remodeled area would be worth more than it should be for that type of home, causing mismatches and other work that needs to be done to make the rest of the home up to par. Potential buyers will generally see this as a negative.
Going Under Budget Is Equally Bad
There’s a difference between remodeling on a budget and pinching pennies on the important aspects such as cabinets and countertops. Also, if you go too far under budget, you may be doing a remodel that doesn’t benefit your home’s value at all. In fact, it may take away from the overall value of your home if the renovation is done too cheaply. Again, you want to stay at or around 25% of your home’s value for the remodel to be worth your time, energy, and money.
A Deal Isn’t Always a Deal
Bargain hunting is great, but when it comes to remodeling, keep in mind that it needs to somehow fit into your new space. Some items you find at discount or being given away may not fit the design or space. They also may not match other items or may have been on clearance for a reason. A bargain is only worth the low price if the item will add more value to the space it’s being used in. Otherwise, leave it in the bargain bin and find a better deal that’s in sync with your overall goal.