Whether you are renovating to improve the resale value of your home, or you’re just ready for a change, renovation projects can be expensive and sometimes go over budget. Moreover, even the most impressive renovations may not recoup their value with respect to their impact on the value of your home. As such, it is important to carefully plan your renovations so as not to overspend and ultimately lose money. The following tips should help you renovate your home effectively and on budget.
Proceed with Caution
Renovations can certainly improve the value of your home if you’re planning on selling, but there are other factors that influence your home’s selling price. For example, market conditions are critical. Living in a safe, attractive neighbourhood will likely have more of an impact on your home’s market price than renovating from top to bottom. Moreover, you want to get your money’s worth, so if you plan to renovate to increase your chance of selling, proceed cautiously. Avoid expensive renovations, but make minor changes to improve the appearance and cleanliness of your home. A new paint job is inexpensive but will make your home more valuable.
Focus on Necessary Renovations
Bathroom and kitchen renovations can have a massive impact on the look and feel of your home, but these are also expensive renovations. Before you start any renovation, you should consider whether or not it is necessary. Renovations need to be cost effective, but sometimes they represent an unnecessary expense. For example, installing a home gym makes your home more interesting, but is it necessary?
Speak to Professional Assessors
Before you sell your home or before your property taxes are due, your home will be assessed for its value. Professional assessors can also help you understand whether you’re going to get a good bang-for-your-buck from renovations. They should be able to predict what value will be added to your home through the renovations so that you can determine if the work makes sense. Expensive renovations that have only a minimal impact on the value of your home should be avoided.
Work with Experts
Your renovations should be completed professionally. Some do-it-yourself enthusiasts have a lot of experience and can likely handle many minor renovations. However, if you lack the necessary skills, always hire an experienced professional. Otherwise, you risk devaluing your home due to shoddy renovations.
Plan, Plan, Plan
Finally, make sure you have a clear and distinct plan for your renovations. You really want to consider every detail before proceeding with home upgrades because last minute changes can be very costly. In addition, you want to stick with your plan if you want to stay on budget. This means, you have budgeted for every detail from basic materials to final fixtures and that you don’t decide to go with a more expensive option after you have set your budget.
Renovations can certainly improve the value of your home as well as its appearance, but you need to carefully consider which renovations are important to you and why. In the end, avoiding overspending ensures that your home gains at least the value that you’ve put into the renovations.
Derrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com