Establishing A Budget is an Important First Step To Home Renovation

Are you feeling like maybe this is the year that you get down to it and renovate your home?  And if so…are you starting to feel overwhelmed by the scope of the job?  Have you started to break down what it is going to take to get it done?

And if you haven’t, are you now thinking about it; and are now getting a little stressed out?

Well, whether you had already experienced a little of that stress or are just now starting to feel it just remember that this is a process and it helps to break things down into smaller, manageable frames of reference.

For example, to ease the tension a little you should start with a Renovco budget. But this does not mean you should just think about how much you want to spend. Indeed, you should look at what the experts’ advice you should spend and how you should divide the work and the money.Image result for Establishing A Budget is an Important First Step To Home Renovation

The Cost-To-Benefit Ratio

Here is an idea: rather than divide your budget by square footage you should instead choose which jobs to renovate based on which rooms will provide more return on the investment.  A kitchen remodel, for example, can cost upwards of $20,000 but if you plan to sell your home, that work could add almost the same amount of value to your home’s asking price.

Now, you are going to have to make these decisions on your own but you can shift your budget towards whichever projects you feel are best.  

Breaking Down Your Budget

To put this more into perspective, consider this:

    • spend between 10 and 15 percent of your home’s value to remodel the kitchen
    • spend between 10 and 15 percent to finish a basement
    • spend approximately 10 percent of your home’s value upgrading a master bedroom and bath to a “master suite”
    • spend approximately 5 percent of your home’s value to remodel the bathroom(s)
    • spend between 2 and 5 percent of your home’s value to upgrade outdoor fixtures and exterior aesthetics
    • spend between 1 and 3 percent of your home’s value to upgrade additional bedrooms and other shared spaces

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