5 Steps to a Home Renovation
A home renovation can add value to your home and your daily life. It can also cost tens of thousands of dollars and be a major hassle in your life. Follow these five steps to make the project as smooth as it can be.
Step One: Create your plan and budget.
Regardless of the size of your project, you’ll want to spend a lot of time on this step. List out in detail all the things you want to accomplish with your renovation.
Next, figure out how much you want to spend. You may have a certain amount of cash on hand, or plan to sell some assets to fund your project. If you plan to borrow money, consider how much of a monthly payment you can afford and for how long. It’s important to consider your budget before you talk to a contractor, so you won’t be tempted to spend more than you can afford.
Step Two: Find a contractor.
This is the person who will be responsible for coordinating every aspect of your project, so be selective. Get recommendations from friends or family and conduct your meeting like an interview. How much experience does he have? Does he have references? How attentive is he to your needs and concerns? Make sure he’s aware of any time constraints (like a celebration or new baby).
Step Three: Secure financing.
Once you and your contractor have agreed to the scope and cost of the project, you’re ready to secure the financing. If you are borrowing money to pay for your renovation, now is the time to apply. A cash-out refinance, home equity loan or home equity line of credit can be a smart (and relatively inexpensive) way to pay for a renovation.
Step Four: Endure the mess.
Depending on the size of your project, a renovation could be a major disruption to your life. Plan for all sorts of hassles, like workmen arriving early in the morning, not being able to get to areas of your house (including the driveway). If your project impacts the kitchen, remember to account for many meals out. If your project is especially large or inconvenient, consider moving out completely for a few weeks or months.
Step Five: Enjoy!
Once the dust has cleared and the construction dumpster has been hauled off, it’s time to enjoy the fruits of all that labor and hassle. Don’t forget to celebrate, even if it’s just noticing the lovely silence of no workers stomping through your home.
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