Welcome to part 2 of my series on renovation budgets! Today we are looking at the important questions to ask yourself before starting any sort of renovation or remodel project. Make sure to take a look at part 1, Remodeling Budget: Why It Matters, before reading on!
Now that you know why creating a budget is so important, you’ll need to know what to do with this new information! Today, we will cover 5 questions that will help you on your way to setting up a budget. Once you mull these questions over a bit, I will give you all the tools you need to make a final budget and get on your way! But first, some questions:
1. How Much Money Do I Have?
Have you been setting aside money for this project? Planning to use your Christmas bonus? Taking out a loan? Take an inventory of how much money you’re willing to dish out and where it’s coming from.
2. What Do I Want to Spend?
This is a very different question from #1. Just because you have the money doesn’t mean it should be spent! If you’re planning on moving next year, maybe you just want spend enough to increase your resale value, saving the money for your forever home. Make sure you’re keeping the long-term plan in mind. If you’re curious about resale value and what it all means, be sure to check out my blog post about Creating Resale Value in Your Home.
3. What Could Go Wrong?
Bathroom remodels are notorious for unexpected problems. Mold, plumbing, electrical…whatever it may be, take into account that something could and likely will be more than you expected. Take a minute to google how much these situations could add up to and account for it accordingly. I usually suggest having an extra 20% set aside for a contingency budget on larger projects like bathrooms and kitchens.
4. Quality Vs. Quantity
Do you want quality? Quantity? Bare bones? None of those options are better than the other, but it will decide how much and where your money is going. Answering this question early on will help avoid lots of arguments with your significant other. Make sure that you are clear about what you want and decide on compromises before the stress and emotions of renovations are high.
5.What Is This Going to Cost?
It seems obvious, but it’s easy to get caught up in the details and forget to see what the average cost is for projects like yours. So be sure to do your research. Once you are comfortable with a ballpark idea of the cost, be sure to get a more precise estimate from a licensed contractor.
I’d love to hear what kinds of questions you ask before setting out on a remodel project! Please share in the comments below.
Make sure to finish out this series in the final post- Renovation Budget: Tools For Remodeling Every Room in Your House. We’ll cover average costs for all types of renovation projects, and I’ll give you some handy tools for figuring out your remodeling budget!