Whether you are remodeling to increase the value of your home or simply making it more comfortable, smart home improvement projects can save money and provide a sense of accomplishment. However, it is important to know that DIY projects can go very wrong.
Having a good contractor is key to staying on budget. Ensure that you can communicate clearly with contractors and understand exactly what you want before hiring them.
Budget
Home improvement is an important part of homeownership. It not only gives your house a fresh look, but it can also add value and help you sell in the future. However, it can be expensive, especially if you have large projects on the horizon.
When planning a home renovation, it is critical to make sure that the project budget fits within your financial limitations. This includes determining whether you will pay cash, use credit, or borrow to finance the project. It is also important to include a contingency plan for the unexpected expenses that are sure to arise.
Taking the return on investment into account will also help you decide how much to spend on the project. High-ROI projects such as kitchen upgrades and bathroom refreshes will give you the most bang for your buck in terms of resale value. Additionally, homeowners should consider tax breaks that may be available for home improvements. These include deductions for materials and possibly even the interest on a loan.
Design
The next step in a home improvement project is to start planning the design. This involves figuring out what projects will work for your lifestyle and what will add value to your home.
Having a plan will also help you set a realistic budget. You should always include a contingency fund in your renovation costs for unexpected issues that might come up during the process.
For example, if you’re remodeling your bathroom, a contractor might discover hidden plumbing problems and incur additional expenses. A contingency fund will allow you to cover these expenses without overspending.
Then, you’ll need to figure out what materials you’ll need and how much they’ll cost. This will require some research online and speaking to local contractors. The prices of materials can fluctuate depending on demand and supply-chain issues. For example, drywall prices are up due to the pandemic and may continue to rise. You can also save money on materials by doing some DIY projects.
Materials
Home improvement projects often require a lot of different materials. Before starting a project, it’s important to research the options that are available and the prices for those materials. It’s also helpful to get quotes from contractors to make sure you have a firm understanding of the costs involved.
Some home improvements may require specialized building materials that aren’t available locally. Others may be difficult to source because they aren’t in high demand, or they may cost more. Some building materials are also not suitable for a particular climate, so it’s a good idea to talk to local home-building experts to find out what options are available.
One of the best ways to save money on your next home-improvement project is by reusing and repurposing items you already have at home. For example, you can use repurposed spice containers or mason jars to store pesky supplies like screws and nails. Another way to save money is by making a budget and shopping smarter.
Contractors
Home improvement projects can be expensive. Getting estimates from contractors is a good idea, but the best way to keep the project within budget is by planning ahead.
Financial planner Bob Harkson says he sees many clients overspend on renovation projects because they don’t plan enough. He suggests logging costs and the estimated cost of each element in an online tool like Homezada to help keep track of expenses.
It is also important to have a general contractor that can address everything you need for the renovation. This can save you time and money because they may already have contacts and experience dealing with similar jobs.
When selecting a contractor, look for references, insurance coverage and certifications. Also, ask for lien waivers from material suppliers and subcontractors affirming that they’ve been paid. This will protect you in the event that the contractor does not finish the job. It also helps prevent disputes over payments after the job is completed.