Avoid Costly Home Remodeling Mistakes
No doubt you are spending more time at home, like so many of your neighbors in Albuquerque and across the nation. And no doubt you're thinking about how you can renovate your home to suit your changing needs. But don't start knocking down walls just yet. You want to make sure that you plan carefully for any renovations you make on your home.
Whether you’re outfitting your home with a new office or classroom, or taking on long-intended improvements such as painting or installing new flooring, here are four tips to help you make sure you’re heading into the right project, the right way.
1. Return on investment
If you plan to sell your home in Albuquerque soon, you should focus on projects that have a good ROI. You can spend thousands of dollars on projects that won't increase the value of your home.
For example, it costs about $50,000 to add a new bathroom, but homeowners typically recoup only about 54% of the cost in increased home value. A minor kitchen remodel, on the other hand, returns about 78% of its cost.
2. Create a budget
The last thing you want to do is run out of money in the middle of your remodel. You need to take care that your project costs don't get out of hand during the process. Add up all of your expenses before you start, and add 10% or 20% to the total to allow for cost overruns.
To get an idea of how much you’ll have to spend on a specific project, look at what others have spent on comparable projects using a project estimate calculator or perusing sites like HomeAdvisor or Remodeling Magazine.
3. Choose the right funding
Over the past year, 34% of homeowners who undertook home improvement projects used cash on hand to fund those projects, 25% used money they had saved for those projects specifically and 14% used money from their economic stimulus check. As long as you're not avoiding more important expenses, using that cash or savings can be a good way to keep from paying interest on your home improvement project.
You can finance your remodel with a variety of options, such as a home equity line of credit, a personal loan, a cash-out refinance or even credit cards. ust make sure to keep an eye on interest rates and the length of the terms, as that will affect the overall cost of the project.
4. Research contractors
If you need a pro to do the work, get written estimates from several Albuquerque contractors. Check references and ask about their credentials, along with licensing. You can also ask about their membership in trade associations. Many reputable contractors belong to professional trade groups such as the National Association of the Remodeling Industry or the National Association of Home Builders.
A good contractor will guarantee the work and offer a warranty. You can check Better Business Bureau ratings to see if others have had complaints about companies you’re evaluating. If there have been complaints, check to see how they were resolved.
When you select a contractor, make sure you get your agreement in writing.
Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.
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