The number of homeowners considering home renovation projects has increased massively over the last five years, with more than 50% planning an improvement project by the end of 2018.
If you’re planning to do a big home renovation, you’ll definitely be handling multiple tasks at the same time, including paperwork, invoices, renovation plans, project deadlines and consultations with contractors. Between all these tasks, the biggest concern for every homeowner is getting stuck in a large project.
While you might have all the best renovation ideas for your living room, bathrooms, kitchen or outdoor areas, you first need to come up with the money to fund your home improvement project, and of course, a detailed plan.
Here’s what you need to know about getting your project moving, the costs involved in big renovation projects, the funding options available and getting everything right from the outset.
What to Do When You’re Stuck
A big renovation project features different contractors, lots of building materials and other moving parts. If you’re forgoing deadlines, it’s probably because there’s a lack of proper scheduling and project oversight. You need one party to ensure that everything is being handled and managed as expected.
You could get stuck in your project due to unforeseen issues like pre-existing conditions, such as termite damage and water damage, which may call for contingency planning, delayed permits or inexperienced contractors. Funding a home renovation project is never enough – you need to plan everything in small detail to avoid getting stuck and incurring additional costs related to contractor fees and additional supplies.
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Understanding the Costs Involved
A 2018 True Cost Report by HomeAdvisor notes that homeowners spend an extra $6,649 on average on home improvements. In fact, more than half of homeowners (58%) upgraded their homes in the last year at an average cost of $15,000. Homeowners are willing to spend more on bigger home renovations, especially if they believe it will significantly increase their home’s resale value.
Living or family room renovations will probably cost you around $3,000, which has remained unchanged since 2016. For master bedroom remodels, you can expect to spend around $2,000 or more. A major kitchen remodel will cost you $22,000 plus. Painting the exterior of your home will cost you $2,700 on average. The average cost of a bathroom remodel will cost you from $9,000 up to $10,000. Understanding the costs involved helps you budget more wisely.
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What Funding Options are Available?
Planning for a major home renovation is not the same as having money on hand to pay for home improvements. When it comes to funding big home renovations, what works perfectly for one person may be the wrong option for another. That’s why it’s important to know exactly how much your renovation project will cost and then consider the options available based on your personal financial situation.
Funding options include a personal loan from your bank, home equity loans that are secured by the equity you’ve already built in your house, home equity line of credit, personal savings, mortgage refinancing or a construction loan. Each of these options has its own pros and cons, so take your time to understand which one best suits your situation.
With the right funding option, you can easily get started with your big home renovation without facing financing challenges along the way. Remember that having a detailed renovation plan and hiring experienced contractors is critical to ensure a successful renovation project.
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