- By Emma Andrews
- Posted February 19, 2020
Smart Financial Decisions to Make When Remodeling Your Home
There’s no doubt about it; choosing to remodel a home is one of the best ways to not only improve the property’s value but insert exactly what you want in your home. However, it’s not all about choosing the perfect paint color or faucet design; there are still the not so fun parts that need to be paid attention to. The following list includes a few smart financial decisions you should make when choosing to remodel your home.
Establish a Budget
A few color changes here and add-ons there can really begin to pile in terms of expenses. There are horror stories where remodeling jobs got so out of hand that the cost of the project cost more than the value seen from the additions. Therefore, it is incredibly important to first establish a budget. Your budget should not only include the items you wish to add to your home but also a “Plan B” in the event certain things go over-budget. Doing this will allow you to still be under control even when things don’t go exactly according to plan.
Adjust Your Mortgage
When it comes to financing your home improvement project, there are a variety of strategies you can implement without breaking the bank. One of these includes using a portion of your down-payment to pay for the remodel. Even if you’re able to afford a 20% down-payment, by using a 5% down-payment, you can use the extra funds to remodel your home, which can increase your property value. This is a better alternative to a loan as you won’t have to pay interest on it.
Writing down all the things you want to see in your new home can be a fun experience. However, this list of wants can quickly get out of hand. Too many items on your wish list may actually leave you with an end result that you might not like. This is because the more things you have on the list, the more compromises you will have to make. Therefore, it is incredibly important to pick out the things you absolutely want first. For most, this would include the kitchen, bathroom, and living room.
Home remodeling can be a great way to add your own personal touch to your home. Although this is a fun and even profitable thing to take on, you should still consider the details that go behind a successful remodeling project. Utilize the information above to avoid common mistakes and ensure that your end results are on the positive side.
Looking for more tips on how to save as much money as possible? Contact us to learn more about our financial planning services!