How to Finance Home Improvement and How to Choose a Contractor
Home improvement is the process of enhancing the interior and exterior of a house. It is also called remodeling or home renovation. It includes all kinds of projects that enhance and improve the appearance of a home. Some of these improvements can be done by the homeowner, while others can be done by a contractor. This article will look at how to finance your renovations and how to choose a contractor.
Cost of renovations
Home renovations have a number of factors that can impact the total cost. The most significant variable is the size of the space, which can range anywhere from $10 to $60 per square foot. A small renovation will probably only cost a few hundred dollars, but a major renovation can cost upwards of $15,000 or more.
Before tackling a major home renovation project, it is important to set aside a budget. This will determine the size of the project, as well as the type and quality of finishes and features. You should also factor in 15% to 20% for unexpected costs. Also, you should budget 1% to 2% of the total cost of your home for annual maintenance and improvements. Other factors to include in your budget are building permits, architect or designer fees, and temporary relocation.
Cost vs. value of renovations
The cost vs. value of home renovations is an important consideration when remodeling your home. The ROI of a project depends on many factors, such as the type of renovation, the market conditions, and the quality of work done. Some projects have historically yielded the highest return on investment, such as kitchen and bathroom renovations and window replacements. However, bigger renovations may not necessarily mean higher value creation.
As the popularity of home renovations increases, the cost of materials such as siding and window replacements has increased. Manufacturers have responded by raising prices, and the average price of these materials has increased 5% to 10% this year. Furthermore, some materials are unavailable or have a long lead time, so you should plan your construction project well in advance. You should also budget extra time to order materials, which can increase the overall cost of the project. In general, the cost of a renovation project will vary from $10 to $60 per square foot, with high-end materials costing as much as $150.
Ways to finance renovations
Home equity can provide you with the funds you need to make home improvements. This type of loan is usually available in the form of an upfront lump sum or a revolving line of credit that you can use as you need it. Although this option may be convenient for some situations, it may not be the best option for you. Depending on your situation, you may want to wait to use your home equity or look for other options.
Another great way to finance home improvements is by using cash. In many cases, paying cash will help you avoid high interest charges on home loans. Many homeowners don’t have enough cash savings to cover the full cost of renovations, but they may be able to take advantage of tax refunds or bonus paychecks.
Choosing a contractor
When selecting a contractor for a home improvement project, you should do some research on the contractor’s credentials. Look at their website and their portfolio. If possible, call former clients of the contractor to find out what their experiences were. You want to make sure that the contractor will be able to complete your project on schedule and within budget. You also want to know how well the contractor communicates with you.
It’s important to hire a contractor with the proper license and insurance. This will help protect you from any unforeseen problems down the road. Also, you’ll feel better knowing that your contractor has the proper licenses and insurance.