If you are thinking about remodeling your home or modernizing your kitchen or bathroom, you are probably wondering how you will pay for the work. The cost of a full house remodel can easily reach five or even six figures, and even a simple room remodel often costs thousands.
That may be why so many homeowners turn to home equity loans, second mortgages and lines of credit to finance the cost of their home remodels. While that is always an option, you do not have to go further into debt to enjoy a more modern home. Here are four smart ways to budget your remodeling costs and avoid unnecessary liability.
#1. Make Strategic Upgrades
If your budget does not support a full kitchen or bathroom remodel, consider making a few strategic upgrades instead. You will be surprised at the difference a new set of stainless steel faucets will make in your kitchen, or how a new standalone vanity will make your bathroom more attractive. The great thing about this strategic approach to home remodeling is you can do a little at a time as your budget allows. Instead of going deep into debt and having your home torn up for months, you can do one project at a time until you have the home of your dreams.
#2. Consider Consignment Stores
Believe it or not, there are now consignment stores and resale establishments that specialize in construction materials. Some of these construction materials are brand new— leftovers from that recently completed development. Others are gently used, things like reception area furniture from closed businesses. Many of these construction-based resale stores are run by Habitat for Humanity, either on their own or in partnership with other charities. Before you head to the local home improvement store, check to see if one of these money-saving stores is operating in your area.
#3. Take a Do-lt-Yourself Approach
You do not have to be a professional contractor to do some simple home upgrades and repairs. From fixing the loose board on the patio to installing a new vanity or sink, there are plenty of things you can do to make your home look better. You should, of course, leave stuff like plumbing and electrical work to the experts. The cost of a flooded bathroom will more than eat up any savings, and the results of an electrical shock could be deadly.
#4. Contact Local Contractors
Even if you can do most of the remodeling work on your own, chances are you will need to hire a contractor at some point during the project. If you want to establish a realistic budget, you will need to start interviewing local contractors and getting estimates.
Check with your friends and neighbors who have recently had work done. Ask them whom they used and how pleased they were with the results. Once you have a list of qualified contractors in hand, you can start interviewing these professionals and establish a budget that will work for you.
Remodeling an entire home can be a daunting task, and updating even a single room can be intimidating. Paying for the price of those needed upgrades is often the biggest impediment, but it does not have to be. Smart budgeting and strategic thinking can help you get the home of your dreams without sinking deeper into debt or worrying how you will pay for it all.