The excitement of a home renovation can quickly be diminished by strained budgets and other unexpected circumstances. The good news is that most of the time, these problems can be avoided by planning properly, setting a realistic budget and always padding your budget for unforeseen issues.
When I rehab homes in my flipping business, I add at least 10 percent to my budget for any unexpected overages. I call that my “oops budget.” This overage will give you peace of mind, as it does for me when problems arise — and they most certainly will. According to a report from Houzz, an online interior design, landscape design and home improvement platform, almost half of homeowners go over budget when doing a remodel. Here’s an even more alarming statistic: only one in five people come in under budget.
One key to a successful renovation is knowing what not to skimp on. It is imperative to decide ahead of time which items you are not willing to spend less on in order to economize, as this goes hand in hand with setting a realistic budget and determining your scope of work.
Every homeowner has different priorities, but there are two rooms in your house that carry the most weight, especially if you plan on selling in the future: kitchens and master bathrooms.
Also consider how long you’ll likely live in your home and personally enjoy the upgrades to make sure they’re worth the investment of your time and money. If you plan to sell, you don’t want to over-customize or overspend, possibly pricing your home out of proportion to the rest of your neighborhood. That said, your remodeling choices should take future homebuyers into account and how much of your investment you’ll be able to recoup.
I believe you can make anything old look amazing again. Remember, if you want to make sure your renovation turns out great, stay positive, be prepared and stay within your budget. Keep your eyes on the prize; it will all be worth it!
Robin Killeen is president of Conquest Solutions and has been buying repo homes, estate homes and bank foreclosures and restoring them into dream homes, ready for new families, since 2015. Reach her at (228) 424-0098.