Quarve Contracting
Tuesday 4 August 2015

5 Important Facts for Home Renovation Budgets

Posted by at 9:00 AM

The part that is easy with remodeling is knowing what you want done and why. Are you anxiously waiting for a new kitchen because yours is out of date? Do you want your bathroom redone because it just doesn't have enough storage? Have you decided on new windows because you're tired of drafts and high utility bills? The reasons for remodeling are many.  You may want to have space added for your family that is growing, or possibly you want value of your home increased. The tricky part of remodeling is knowing how to do it without spending more than you can afford. 07jul30a1a125When planning your renovation, consider these five facts about your budget:
  • Estimated costs
  • Financing options
  • Quotes
  • Your plan
  • Allow for the unexpected
Cost Estimating:  A rule to stand by, never spend more renovating a room than the room is worth in your home's total value. An example, most kitchens are approximately 10-15% of the value of the property. If your property value is $100,000, then you want to spend no more than $15,000. Surprisingly, kitchen renovations are one of the investments that bring back low return. Bathroom remodels in the mid-range have the highest return of interior projects. Consider Different Loan Options: If borrowing money from the bank for your project, find out how much can they lend (be sure to look around) and what kind of loan is right for you. A home equity loan may be best if this is the only project you plan on completing. However, if you are planning on several home improvement projects and will be needing money ongoing, a home equity line of credit might be a better choice. Receive Quotes from Contractors: Many contractors’ estimates are given with what they may think you want completed. In most cases it will end up costing more unless that estimate is very detailed and reflects exactly what you want. Be specific with exactly what you want them to do, and have it written in the contract. This includes even material you want used. You want quotes from a few contractors, and throw the lowest bid out.  A bid that's substantially lower than the others could indicate the contractor will cut some corners and probably not deliver the same quality as the others. Stay with the Original Plan Even a change that is minor can be costly. If possible, stay with the agreement you have originally, except... Account for Unforeseen Expenses  Whenever home remodeling is done, expect the unexpected.  Issues not able to be seen at first make projects cost more than originally planned for. When planning your home renovation, add 10-20% more for unexpected expenses.  Here's a good example.  You're having a new roof installed, and when the roofing contractor tears off the old roof, rotted wood trusses from undetected leaks is uncovered.  That wood has to be replaced before the new roof can be put on. Thinking about a home renovation project? Contact Quarve Contracting for an estimate today.  We are committed to providing the very best in exterior home remodeling, and we don't like surprises any more than you do.  We'll meet with you and go over in detail just what you've got in mind. We like to stay on budget, and we'll do our best to make sure you do, too.