How to Set a Home Renovation Budget

Before you start picking out tile and paint chips, be sure you know how much it will cost to remodel your house.

Ready for a kitchen renovation? Anxious for a bathroom remodel? The easy part is knowing your goal for home remodeling — whether you’re trying to keep up with your growing family, add office space, or increase your home’s value.

But figuring out how to plan a home renovation that doesn’t break the bank can be tricky.

Here are five key steps in planning your home remodeling project.

1. Estimate home renovation costs

As a general rule of thumb, you should spend no more on each room than the value of that room as a percentage of your overall house value. (Get an approximate value of your home to start with.)

For example, a kitchen generally accounts for 10 to 15 percent of the property value, so spend no more than this on kitchen renovation costs. If your home is worth $200,000, for example, you’ll want to spend $30,000 or less.

A kitchen remodel should cost no more than 10 to 15 percent of your home’s value. Photo from Offset.

Something else to keep in mind: Contrary to popular belief, kitchen renovations offer among the lowest return on investment, according to analysis from Zillow Talk: The New Rules of Real Estate. Every dollar you spend on a kitchen remodel increases the value of your home by 50 cents.

The highest return on investment? A mid-range bathroom remodel.

2. Consider home remodeling loan options

If you plan on borrowing money to fund your home renovations, there are a number of loans out there to help with just that.

  • Refinancing. Depending on your current interest rate, you might be able to refinance your mortgage at a lower rate and/or for a longer loan term, which could lower your monthly payments and help you save up for your renovations.
  • Cash-out refinance. If you have enough equity, you could also consider a cash-out refinance, which means refinancing your existing loan for an amount that’s higher than what you owe. Going this route, you pay off your original mortgage and have cash left over. Use a refinance calculator to see if refinancing makes sense for you.
  • HELOC. If refinancing sounds like too big of a leap, a home equity line of credit (HELOC) might work better. A HELOC works a lot like a credit card in the sense that it has a set limit that you can borrow against.
  • Home equity loan. Although it sounds similar to a HELOC, a home equity loan is a bit different. This loan requires you to take out all the cash at one time. They’re often referred to as “second mortgages” because homeowners get them in addition to their first mortgage.

Refinancing, getting a HELOC or taking out a home equity loan are all big decisions, and it can be tough to know which one makes the most sense for you. As with any new loan, consult with a lender to see which option is best for your situation.

3. Get home renovation quotes from contractors

Some contractors will give you an estimate based on what they think you want done, and work completed under these circumstances is almost guaranteed to cost more. You have to be very specific about what you want done, and spell it out in the contract — right down to the materials you’d like used.

Make sure that contractors’ estimates include the full scope of your project. Photo from Shutterstock.

Get quotes from several contractors, tossing out the bid from the one who gives you the lowest estimate. Going with this choice could be asking for problems, as low-priced contractors are known to cut corners — at your expense.

4. Stick to the home remodeling plan

As the renovation moves along, you might be tempted to add on another “small” project or incorporate the newest design trend at the last minute. But know that every time you change your mind, there’s a change order, and even minor changes can be costly. Strive to stick to the original agreement, if possible.

Even minor changes to your remodeling project’s scope can add significant costs. Photo from Offset.

5. Account for hidden home renovation costs

Your home may look perfect on the outside, but there could be issues lurking beneath the surface. In fact, hidden imperfections are one of the reasons renovation projects end up costing more than you anticipated.

Rather than scramble to come up with extra money after the fact, give yourself a cushion upfront. Factor in 10 to 20 percent (or more) of your contracted budget for unforeseen expenses, as they can — and do — occur. In fact, it’s rare that any project goes completely smoothly.

 

Posted by Vera Gibbons on Zillow

 

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Top 4 Home Renovations for Maximum ROI [INFOGRAPHIC]

Some Highlights:

  • Whether you are selling your home, just purchased your first home, or are a homeowner planning to stay put for a while, there is value in knowing which home improvement projects will net you the most “Return On Investment” (ROI).
  • While big projects like adding a bathroom or a complete remodel of a kitchen are popular ways to increase a home’s value, something as simple as updating landscaping and curb appeal can have a quick impact on a home’s value.

 

Posted by The KCM Crew

Wondering how much your home is worth? Click HERE to find out!

7 Top Tips from Established Mid-Missouri Businesses

The best business advice invariably comes from business owners who have navigated the path from uncertainty to success. At Zimmer Radio & Marketing Group, we’re connected with all sorts of mid-Missouri businesses at different stages of growth and success. That’s why we’re going to share advice from our more established clients as marketing tips for mid-Missouri businesses.

ServiceMaster of Columbia

www.missourimasterofdisaster.com

Be consistent in your marketing, in every aspect, so you don’t confuse your customer.

– Adam Kinser, Owner

Tiger Express Wash

Tigerexpresswash.com  

Be consistent in your advertising. Find something that works and stick to it for a long period of time. Advertising the same time on the same day, or being in a print issue each month. By doing so you capture the same customers and get the message across, even though it may take awhile. Customers will expect to see you in print or expect to hear you on the radio or TV. Eventually the message will stick with the customer.

– Emeri Bartels, Administration Director

Epoch Health

www.epochmenshealth.com

Get to know your community and how it works. Immerse yourself completely and get to understand and know how people interact with each other, with other businesses and the everyday life. Actions speak louder than words. We can say we want our business to be a part of a community but by doing so we gain the trust of our community and, in the end, become a true addition to our surroundings which shows a true partnership.

– Jentry Mills, Marketing and Business Development

House of Brokers Realty, Inc.

Houseofbrokers.com  

I have two [tips]. Track your ROI and ask for a review. Always know how and why your customers are coming to you.

– Dawn Daly, Director of Operations

 

The Blue Note

http://www.thebluenote.com

Branding is everything. Spend money to develop a great logo, slick brand, and impressive website. It’s the face of your business.

– Matt Gerding, Owner

TrueSon Exteriors

Truesonexteriors.com

Choose the advertising direction you want to go with, invest meaningful money into it and most importantly, give it time to work. I have seen a lot of business owners start, give it three months and quit because they don’t see “results.” Good advertising takes time to develop.

-Barry Roewe, Owner

Tami R Benus CPA

www.trbcpa.com

One tip – Know who your market is so you are not wasting your resources.

– Tami R Benus, Owner

With these marketing tips for mid-Missouri businesses from our established clients, it’s time to take a quick look at how you’re running your mid-Missouri businesses. Are you taking advantage of their good business practices? If you’re interested in finding some of the same success they have, contact Zimmer Radio & Marketing Group to find out what we can offer you today.

Posted by Carrie Lorenz of Zimmer Radio & Marketing Group