If you’re planning to do some remodeling, it’s important to have a budget and stick to it, whether you’re doing a minor project or a major renovation.
One of the first things you’ll need to do is to establish the budget by examining the value of the room in which you’ll be working. Multiplying your home’s value by the percentage will help you set the baseline for your budget. According to the Appraisal Institute(link to http://www.appraisalinstitute.org), each room accounts for the following percentage of your home’s value:
- kitchen – 10% to 15%
- bathrooms – 5% to 10%
- half-baths – 5%
- finished basement or attic – 10% to 15%
That being said, remember that what you spend does not necessarily mean that you can increase the asking price on your home. So you’ll want to do your level best to save money where you can on home renovation projects.
Save money where you can
Doing some of the work yourself can save you a ton of money. If you’re putting new cabinets in your kitchen, the demolition is relatively easy. Although it does require some attention to detail, painting the interior is something that can be done relatively easily and cheaply.
By avoiding doing projects that will completely change the blueprint of the room, you can save thousands of dollars by updating rather than overhauling bathrooms and kitchens.
Finally, you can save money on fixtures and appliances by doing some of the legwork yourself. Some appliance outlets and even large department stores offer big discounts on discontinued, scratch and dent, and returned merchandise. Find restaurant supply stores in town for major appliances; many don’t require you own a restaurant in order to purchase from them.
The most important tool you have when it comes to home renovations is the budget. You’ll recoup much of what you spend when you sell by not overspending. Set a budget and stick to it.