Now that you’ve finally decided to purchase that fixer-upper home you’ve been eyeing. It’s time to plan the remodel. But just how much will it cost you? In general, expect to spend several thousands of dollars for a fresh paint job and about several hundred thousand if you’re doing major work, with all the bells and whistles.
Where Do You Start?
To begin, look at your wish list for what you want to be done and then regroup items into “must-dos”, “maybes”, and “in the near future”. Next, do your due diligence and shop around to see how much they’ll, paying particular attention to items in the “must-do” list.
Add Extra for Things You Might’ve Forgotten
Even the most thorough planners forget something when planning a remodel. According to experts, you should save at least 10% of your budget for unforeseen expenses. Perhaps for hidden issues, you only spotted once you took down a wall in your home for instance. You should likewise consider setting aside some of your budget for some things that you want to add while your contractor is still there.
Don’t Forget About Resale
If you’re looking to do some work that could substantially increase your home’s resale value (if you plan on reselling in the future), consider a HELOC or home equity line of credit for your expenses. Keep in mind of the unpredictability of the real estate market, and only borrow what you could comfortably pay off if ever prices dive down when you plan to relocate.
Keep the Flourishing Touches in Mind
Make sure that your budget for home accessories since these are the things that would add soul and character to your home. While you could purchase some stuff down the line, ensure that you have an adequate budget for the things that you initially need.
Don’t Forget to Seek Professional Help
To get accurate estimates for construction, architecture, and interior design, speak with professionals that you want to work with. Tell them about your wants and needs and see how much your plans would cost, including materials and the work of subcontractors. Make sure to speak with several professionals to see different price points. This is crucial especially if you’re using a loan such as the FHA 203k loan or a construction loan to pay for your renovation since your lender would want an estimate of how much everything would cost.
So whether you plan just to renovate your kitchen or your entire house, find out how everything would cost before you knock down your walls. Otherwise, you might end up paying more or worse, running out of cash midway through your renovations. You have been warned.