6 Steps for a Better Renovation Budget
Whether you are renovating your own house or an investment property, it is important to plan out your budget in advance. This can help you stay within your means and avoid overspending. Having a detailed plan in place can also help you get everything done on time.
Here are some of the key steps you will want to take when developing your renovation budget.
1. Figure Out How Much You Can Spend
The first step is to know the top end of your budget for your renovation project. You don’t want to spend more than you can afford. If you are investor, you don’t want to eat into your profit potential by overspending on the renovation. Determine the top end of your budget and then use that to keep your spending under control.
2. Prioritize Projects
Prioritizing the renovation projects is another important step to take. Depending on your budget and timeline, you may not be able to do everything you would like to do. Determine which rooms or specific remodeling tasks are going to be more important. You may focus on the kitchen and bathrooms first, as those are generally the best for adding value to your property. Flooring, roofing and structural renovations may also be more important than cosmetic things.
3. Break Down Your Budget By Project
Now that you have a priority list of projects, you will take each one and figure out a budget. Know how much it is going to cost you to redo the kitchen and/or determine how much you want to spend for any given project. This can also help you re-prioritize your list if certain plans aren’t worth the time and money.
4. Use a Budget Template
There are many free construction budget templates available online, as well as apps and software you can download to streamline your budgeting process. This is a good way to cover all your bases and have an organized plan/budget to track.
5. Find the Right Contractor
As you develop your project list, determine which items you can do on your own and which ones will require professional help. Then, interview several contractors. Get very specific price quotes and timeline commitments from them. Find someone you trust to get the job(s) done right.
5. Be Conservative
We say this a lot, but it is always important to bring up. One of the biggest mistakes home renovators make is underestimating costs and timelines. Expect the unexpected and build some wiggle room into your budget. This protects you in case something costs a little more than you hoped or takes longer than you wanted. If you get something done under budget, great. Then, maybe you can add one of those extra projects back on your priority list!
These are a few tips to help you set a better renovation budget. For help with all your real estate investment and home buying needs, join the PropertyLark network.