Your Guide to Planning Your Home Remodel: Financing and Cutting Costs
You’ve come into some extra cash and you’d like to use it to remodel your home. It’s a great investment as it can increase your property value and create a more purposeful space for you and your loved ones to enjoy. If you’re going to remodel your home, however, planning it is a lot more complicated than calling the contractors and choosing the designs – especially in the finance department. There are a lot of associated costs that will need to be considered to cover the costs of the home renovation. Below is a brief guide on how to get it all done.
Review Your Finances
No matter what kind of remodeling you’re having done to your home it’s going to cost you a lot of money. Going too deep into debt is a possibility if you don’t first review your finances. Get an idea of how much money you have to dedicate to the project without neglecting any of your other financial obligations. Then, add to that the total amount of money you have set aside in savings or other assets to contribute. If you can’t get a clear picture consulting with a financial planner San Diego, or near where you live can give you a better concept of if and how much you can afford to spend on a home remodel.
You know what you can spend on the home improvement project, but how much is the job actually going to cost you? You need to get estimates to determine approximately how much you’ll need to have. Contact at least three reputable contractors in your area to visit your home and give their best estimate on what it would take to make the changes you’re requesting.
When getting estimates, keep in mind that there are other home improvement costs that may not have been factored in. You will need a little wiggle room for mishaps, other problems that are discovered, extended deadlines, sales tax, and other contractor fees.
Find Ways to Save
There are always ways you can save on the cost of a home remodel. Now that you’ve been told by three experts how much it could actually cost you, it’s time to do some research to determine if you can get those costs even lower. Some suggestions might be looking into getting construction and design materials from companies who do manufacturing in mexico because the costs would be cheaper. You might also consider doing the demolition work yourself. This reduces the amount of time the contractors have to spend on it and save you money on labor costs. Lastly, hiring a contractor with the lowest rates will also save you money.
Covering the Costs
You’ve now got all the facts you’ll need to determine how you’ll cover the costs of your home remodel. You know how much you have to spare from your personal finances, you have an estimate on how much the job would cost, and you’ve come up with a few ways to save. Next, you need to take the total cost of the renovation and compare it to your budget. If you have more than enough with your personal finances, you’re ready to start renovating. If the amount you have on hand is less, you’ll need to consider solutions for covering the costs.
Here again is where having a financial planner is ideal. They can give you suggestions on how to cover the costs and help you to make informed decisions about using credit, moving finances around, or taking out a loan.
Renovating your home is a great way to spend extra cash or to invest in your future. All too often, however, homeowners start the renovation process without having a clear understanding of what it will cost and if they can afford it. Using the steps above will give you a better idea of what to expect in relation to costs and help you solidify a plan to cover it that allow you to have a home better suited for modern living – without going bankrupt.