Decide on your top renovation needs and priorities
The reason for renovating your home probably has something to do with a need that isn’t being met by your current living situation. Perhaps it’s a need for more space or perhaps it’s a need for an updated bathroom. Whatever the reason (or reasons) for renovating, be sure to write down and prioritize all of your remodeling goals. For instance, a larger kitchen island may be at the top of your priority list, whereas updated appliances may be lower down on the list of needs. Keep your goals in mind and avoid getting side-tracked with smaller projects that can wait for later.
Look at cost vs. value for each renovation project
Planning to sell your home in the future? Keep the return on investment top of mind when choosing home renovation projects. After all, there’s no reason to pour $40K into a kitchen, if the home isn’t going to sell for more than you originally paid. Once you’ve prioritized your home renovation needs, research each project’s cost vs. value using Remodeling Magazine’slatest Cost vs. Value report. The report includes the cost of common remodeling projects and compares them to that project’s resale value. This should give you an idea about which projects are worth the money and which projects aren’t. For instance, the 6 most valuable home improvement projects of 2018 included an upscale garage door replacement, manufactured stone veneer, the kitchen, siding and vinyl window replacements and a bathroom remodel.
Figure out how you’re going to finance the renovation
Now for the hard part: figuring out how exactly you’re going to finance this renovation. First, take a look at your current finances. Do you have enough cash to cover the renovation? If so, great. If not, you’ll need to borrow money for the project. Unless you have a fairy godmother willing to loan you cash, we recommend either using a home equity loan or home equity line of credit (HELOC), where homeowners can borrow money against their home. Many homeowners also use credit cards to finance their renovation projects. This may be a good idea – assuming you have a plan to pay these credit cards off. If you have strong credit, you may also be able to obtain a loan through SoFi, an online personal finance company providing personal loans and mortgages to high income individuals.
Talk to others who have finished similar renovations
Discuss your renovation project with someone who has experienced it first-hand. In addition to obtaining knowledge and tips on how to complete a successful renovation, you may also learn how to cut costs and budget appropriately for certain projects. For instance, someone who has renovated a master bathroom before should be able to give you tips on where to find good deals on hardware and supplies. In addition to telling you what to do, they should just as easily be able to tell you what not to do when it comes to renovations. Learning from their mistakes could end up saving you a substantial amount of money.
Create a list of specific needs and goals for contractor bids
After going over your needs and wants, create a clear list of renovation goals to hand to contractors. This will ensure that your bid (or cost estimate for the renovation) is as accurate as possible. Make sure to include both major structural changes to the home and cosmetic changes. Examples of what to include on a kitchen renovation list include demo, new quartz countertops, new custom-made cabinets, painting kitchen cabinets and walls, new subway tile backsplash, ceiling beam installations and new GE appliances. Make sure to include specific brands you plan on using as well. From here, a contractor should be able to give you a much more accurate quote.