When going for a home renovation, knowing what you want is the easy part. The difficulty comes in planning a budget you have to spend in order to fund the project. Homeowners and investors alike need to have a clear idea of what their maximum budget will be and be realistic about what they can afford.
If you’re considering a major home renovation, let GetPro Construction guide you through to set your priorities, establish a spending limit and stick to your budget as much as possible.
STEP 1: Pin down your costs
The first step is drilling down the specifics and crunching the numbers. What areas of the property are you planning to renovate? What material are you going to use? Do you have the power tools to start with?
A smart decision would be gathering materials and finishings before the project begins. In this way, you can start pinning down on your budget. Are you looking for a complete overhaul of your floorboards and change them to hardwood floors instead? Perhaps you may be looking into covering up some parts of the living room floors with carpet. Once you set up a clear objective, you can easily formulate an accurate budget.
STEP 2: Look for financing options
Once you’re dead-set on the project, you need to get your finances in check. For those who have the hard-earned cash readily available, you basically have the project figured out for you. However, it’s quite common for a lot of homeowners to consider loan options – and there are a number of them out there. Some of the options available to fund your renovation are:
Cash-out refinance
This allows you to utilize the equity you have in your property to get a new mortgage to replace your existing one. At the same time, this converts some of your equity into cash. Most home renovations, especially the larger projects, are costly. The gist of this loan is that you’re borrowing more than you currently owe on your loan and keep the difference. Also, a cash-out refinance allows you to tap into your most valuable asset – your home.
Home equity line of credit (HELOC)
This loan option is quite popular for a vast majority of homeowners. Similar to a cash-out refinance, a HELOC is secured by your property’s equity as well. The caveat here is the minimum payment is a month’s interest. This essentially means that you’re not required to pay back any principal. It also allows you to draw in funds as much or as little as necessary. However, you may need to pay off your full balance once the draw period (set period of time in which you can use the funds) ends.
STEP 3: Adjust the project to fit your budget
When your goals and budget don’t exactly align, it may be best to start trimming down to maximize your funds. Once you carefully scale down your dream project, chances are you’ll end up satisfied and at ease. At the same time, you don’t want to opt for cheaper renovation products just because. There are ways to cut your budget without sacrificing the quality of the project’s workmanship.
Refurbish don’t replace
This applies to old furnishings or items in your household that have gone through the test of time. High-cost items such as home appliances can be salvaged, assuming it’s in good working condition. For example, for cabinets who are a bit worn out, refacing them can save you a lot of money rather than replacing them entirely.
Consider a DIY approach
There are a number of projects that can be tacked on by yourself. You can reduce any labor costs if you’re willing to get your hands dirty and working on light initial deconstruction jobs such as removing the kitchen backsplash, tearing the carpet off, or applying a fresh coat of paint on your bedroom walls.
STEP 4: Get a quote
A home renovation project, no matter how big or small it is, requires a lot of insight from different people, especially from professional contractors. Some contractors offer a free estimate over the overall project. However, it’s advisable to have a hard quote instead. This gives you a detailed outline over each and every area that the project covers when it comes to its costs. It also gives you the timeline for the job up until completion.
For an in-depth estimation over your renovation project, look no further than GetPro Construction to help you out. We provide proper documentation and offer transparency over the scope of the entire project. As such, we make sure that all tasks are completed in accordance with city laws and regulations along with the necessary permits. To learn more about our services, contact us at (734) 822-9595 or reach out to us via email at info@getproco.com.
