From updating your kitchen to installing new flooring, it’s important to understand how to budget for your next major home renovation project. According to the National Association of Realtors, some projects can even garner a massive 147% return on investment.
Before you start making plans for your next project, it’s vital to know how to create a home renovation budget in NJ. Read on to learn some ideal remodeling tips and how having a budget will save you time, money, and headaches so you can enjoy your new space.
Consider the Value of Your Home
Before beginning work on any project, it’s vital to know the total value of your home. Keep in mind a good rule of thumb is to spend no more than 10 to 15 percent of the home’s value on any single room. Going over this amount will not add value in proportion to the amount of money you spend.
Let’s say your home is worth $200,000. That means you should spend no more than $30,000 on a major home remodel, such as a kitchen or bathroom renovation.
Saving and Financing: Home Renovation Budget 101
Once you know exactly how much money you’re able and willing to spend on your home remodel in New Jersey, it’s time to think about where the money will come from. You could plan to save your money until you have enough cash or you could look into financing instead.
Remember that if you’re taking out a loan, it should be for enough money to do the project without going over by too much. Next, set aside about 10 to 20 percent of that amount to cover any unexpected costs.
When you plan ahead by adding some “wiggle room,” you’ll easily be able to handle anything that pops up. This is also great if you happen to have extra money at the end of your project and want to pay for a small add-on.
Talk to Your Contractor
When you renovate a house in NJ, you’ll need to hire a reliable contractor who understands your needs and goals. Make sure that you tell them how much you’re able to spend well in advance before any work begins.
Your contractor should go over a detailed plan designed for you including the total cost of all labor and materials. This will help you understand what you can afford, and what you should change to stay within your budget.
Key Takeaways:
- A home renovation should not cost any more than 10 to 15 percent of your home’s value.
- Hiring an experienced contractor who understands your needs and budget is of utmost importance.
Budgeting Keeps Your Project on Track
With some planning and patience, you’ll easily be able to tackle your next home remodel without breaking the bank. If you need help with your home remodel in New Jersey, be sure to contact the pros at Advantage Contracting today for more information or to schedule your free consultation.
