Does it really have to be that grand, though? You want to do a good job, sure– but is it really necessary to spend obscene amounts of money?
An area in your home accounts for a certain percentage of your entire property. A kitchen, for example, may be considered 10-15% the house’s market value.
Make sure to compute for this first, and try to calibrate it with your budget.
Make realistic estimates (which often means purposely adding a bit of a buffer on every expense) to avoid under-budgeting.
Contractors will quote you based on your ideal plan, and how they would make it a reality—from manpower to materials needed. Tell them you’re expected budget and see if they can work with it.
Resist any urge to add a little side project along the way. If there’s a little extra money left over, then do that desired side-project after the initially planned renovation is completed.
You can also start lurking through the aisles of hardware stores paying particular mind to the prices of items relevant to your renovation. If you’re renovating your bathroom, for example, you might want to check out new sinks. Mark down some prices. Get a sense of cost. Make a spreadsheet and keep track of everything you find.
Allot a buffer of around 15-20% on top of your budget for emergency circumstances.
There are a few options you can consider—refinancing, cash-out refinance, HELOC (home equity line of credit), and a home equity loan. Make sure to study all your options before you finally take the plunge.
Just be sure to keep your long-term financial health in mind. You don’t want to sacrifice your future at the expense of the present.
