The cost of home renovations is always a contentious issue, especially when you’re planning to do an extensive scale renovation. On one hand, you want to make sure you get the best result possible, but on the other, you don’t want to pay for anything that isn’t necessary.
Fortunately for you, we’ve put together a list of what you should do to avoid costly mistakes in renovating your property.
Ways To Avoid Expensive Home Renovation Mistakes
Are you planning on doing a renovation? The first thing you need to do is figure out if your renovation project will require a permit. Each municipality and province has its own rules for whether or not you need a permit. Some municipalities will require an electrical permit for all electrical work, while others may not require a permit for any electrical work. Some may require permits for plumbing, while others may not. The point is, it’s essential to be aware of the rules and regulations of your municipality.
Focus On The ROI
Home renovations are a chance for homeowners to get creative and change the look of their home to something they find more aesthetically pleasing. They also offer many benefits when homeowners make smart decisions about the work they want to do. According to a study by the Harvard Joint Center for Housing Studies, home renovations have the potential to add hundreds of thousands of dollars in value to a home.
If you are planning to do some home renovations, you probably want to know whether or not you will see a return on your investment. The amount of return you will get from your home renovation is as unique as the project itself and will depend on a number of factors, including the cost, size and scope of the project, the features you are adding, and whether you are planning to sell your home in the near future.
For instance, it is quite expensive to add a bathroom to your property. At the same time, its added value to your home would just be 50%. Meanwhile, kitchen remodeling is quite cheaper than bathroom installations, but it can give you an ROI of roughly 80%.
Make A Budget
When renovating your home, never underestimate the importance of creating a budget. You may have a clear vision of what you want to achieve, but without some way of keeping track of your estimated costs, you’re likely to go over budget.
Deciding to renovate your home is a big step, and it’s natural to feel a little overwhelmed when you’re first starting out. The first thing you should do is create a budget to ensure that you have enough money to pay for the renovations you want. And don’t forget to factor in extra costs you may need to incur, like paying for a new roof if you want to replace your shingles.
The best way to create a home renovation budget is to figure out how much money you have available to spend on renovations and how much money you can expect to receive from any grants or loans you may receive. After this, you can put side-by-side the cost of the project and the actual money that you have. If you are unsure of the cost, you can get a quotation from contractors. They can give you an idea of how much you need to allocate for your desired home renovation.
Choose The Right Funding
There are many ways to fund your renovation project. One way is to combine a renovation loan with a personal loan. As long as you are careful with the interest rates and the amount you borrow, this is a great option to fund your next big renovation.
A home equity loan is a good option, but its high interest can be costly. A better option might be to get a home equity line of credit (HELOC). You’ll pay a lower interest rate, or sometimes none at all, and you’ll have more time to pay back the money you borrow. If you have your own cash, you can use a mortgage to buy and your savings to renovate.
Get The Right Contractor
Anyone who’s ever painted a room, installed new cabinets, or remodeled a shower knows that to get the job done right, you need the right tools. It’s the same with home renovations. The difference is when it comes to home renovations, you need to hire a team of professional contractors.
You can’t just add a room onto your house on your own, install new cabinets, or repair a leaky roof without help from a contractor. Why? Well, professional contractors know what they are doing. They can get the job done right. They have the necessary tools, equipment, and expertise to do various construction projects, regardless of the scale.
Furthermore, professional contractors can give you standardized estimates. They are least likely to scam you, which is something that you should consider. After all, home renovations can get expensive. Hidden charges should not be welcomed at all!