Thinking of Remodeling? Here's How to Plan for It
What’s your vision?
Make a blue-sky list: if money were no object, what would you have done as a part of the remodel? Make another list that includes any necessary-but-hidden upgrades: plumbing, electrical, structural work. Next, prioritize your blue-sky list. What’s most important to you? Rank order the list with the must-haves at the top of the list.
How are you going to pay for it?
Before you get any estimates, it’s a good idea to set your budget. That way, you know in advance what you can afford, before you get tempted to over-extend yourself. If you’re planning on taking out a loan to pay for your remodel, estimate what monthly payment you can afford. Your choice of loans will impact how much you can borrow, so do your research: a cash-out refinance, home equity loan or line of credit are all smart options If you have cash set aside, determine the total amount you want to spend.
What’s it going to cost?
At this point, you’ll probably want to talk to a contractor and/or architect, depending on the nature of your project. Ask for recommendations from friends or family, or use websites like ServiceMagic® to find reputable professionals. Get estimates on your blue-sky list. How does the cost compare to your budget? Be conservative – plan for 20-30 percent cost overruns. Take another look at your list: what are the items on the list that you can live without or that you can do yourself?
What’s your timeline?
Are you preparing for some event, like a wedding or a new baby? This is important information to convey to your contractor or architect. Again, be conservative and pad the timeline. Remodeling projects are like any other complex project: even the best managed projects run into snags and delays. If your project is very large, or involves disruption of high-use areas of your home – the kitchen, for instance - consider carefully your living arrangements during the renovation. Don’t rule out moving out – you and your family may need a respite from the dust and noise, as well as the strangers trooping through your home.
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