If you are considering remodeling your home, the concerns are always the same. Will it increase the value of the home? Can I afford it? Will it look as good in my home as it does in the magazine? These are just a few of the questions you’re probably asking yourself.
Remodeling isn’t an easy task, it’s time consuming, noisy and inconvenient. Once you make the decision to go for it, it’s time to jump in feet first, but before you do, here are a few tips to help you get started.
Does it Make Sense Financially?
Currently, about 1 in 4 homeowners in America are underwater on their mortgages, which means they owe more on their house than its current market value. If you are anywhere near being underwater on your mortgage, then a remodel will definitely not help. Ideally, you want to be sitting on at least 20% equity in your home in order for a remodel to make sense financially.
Different rooms tend to have different payoffs. The kitchen tends to be the most popular remodel option for most people, and HGTV estimates that homeowners tend to recoup 60% to 120% of their investment on a kitchen remodel. Now, this, of course, is quite a wide range. The amount of money you are able to recoup from your remodeling project depends on how long you stay in the home after the remodel. Of course, the longer you stay, the more you can leverage the remodel as the value of the home rises over time.
Cash may be a deciding factor when choosing which room to remodel. The kitchen will generally be twice as much, or more, expensive than a bathroom remodel. Therefore, if your home only has one bathroom, adding a second is a great way to recoup your investment, since a second bathroom is typically a common demand for new homebuyers. Applying for a home equity line is often a better decision than using credit card services.
Saving Money on the Job
If you will be living in your home for an extended period of time after the remodel, you may want to consider making the remodel a project. If you are not pressed for time, you may want to buy a few tools, pull up Youtube, and give it a go yourself. If you have any measure of carpentry skills, you can save thousands of dollars by doing the project yourself. Unless you are doing a complete renovation job, you may be able to handle much of the work yourself.
We are also in the midst of the greatest employment crisis in modern history, so there are scores of talented carpenters out of work, and finding quality work is cheaper now than it usually is. In fact, while searching for plane tickets and information on airports to fly out of, I ran across a mechanic using Google Ads to make his pitch to hire him. While you probably aren’t in need of a mechanic to update your home, it shows just how far people are going to find employment in these times.
Remember, you do often get what you pay for, but if you negotiate wisely and get several estimates, you can save yourself money. You can also use a Crate and Barrel coupon code to save some cash, because let’s be honest, a coupon can push just about anyone over the edge when it comes to shopping at Crate and Barrel.
Remodeling your home is a big decision. Never rush into a big decision. Take your time, make sure the finances are in order, and you will soon be enjoying a new home!