If you want to remodel your home, it’s important to devise a budget sooner than later. You must determine not only how much you can spend on the project as a whole, but you must also decide how much you can allocate for each aspect of construction. If calculating such figures sounds overwhelming—or you’re unfamiliar with the industry’s going rates for various services—a project management firm can help. In the meantime, here are a few tips for getting started.
3 Tips for Devising a Remodeling Budget
1. Overestimate the Total Cost
When it comes to major projects, it’s always wise to budget more than you think you’ll need. This will allow at least a little wiggle room if unanticipated expenditures arise along the way—and you can be sure they will. Additionally, the initial quote may not include finishing costs, like landscaping, fencing, decking, and window covering, which can easily increase the total cost by as much as 10-20%.
2. Think About Loan Options
If you aren’t paying for the project in cash, you’ll need to determine what kind of loan to take out. A home equity line of credit (HELOC) is one of the most common options thanks to more affordable interest rates. HELOC and home equity loans are secured funds based on the value of your home. You can also refinance your mortgage, which may be advantageous if interest rates are now lower than when you first signed your mortgage. Talk to a lender to see which option is best for your financial needs.
3. Review Local Rates
Neighborhood comparisons are helpful when it comes to appraising an existing home. Whether you’re adding a sunroom, building a new third floor, or remodeling the kitchen, you still need to determine the average price per square foot. This will ensure you don’t price yourself out of the neighborhood, which is critical if you plan on selling someday.
For help devising a construction budget for your home—and then bringing the project to life—turn to Ed Earl Priority 1 Projects. Based in San Diego, CA, this firm has been advocating for homeowners throughout the area since 1995. Their construction consultants ensure contractors finish every job on time and within budget. If you’re determined to build your dream home but feel overwhelmed at the thought of getting started, they can help. To explore all the services they provide, visit their website. To talk to a project manager about devising a budget—and then ensuring contractors stick to it—call (858) 939-9227.
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