You know that remodeling can add value to a home, but how do you know what rooms are worth remodeling, how much to spend and how to prevent your project from getting out of hand?
First, think about design and function, and distinguish between your wants and your needs – do you want to refresh your space to help you sell your home or do you want to create your dream room in the house you’re thinking of buying? Your goals for the project will set the parameters of your budget.
Room size, floor plan, product choices and amount of required labor affect the cost of a project. Kitchens, for example, can range from $5,000 to $50,000. The National Association of the Remodeling Industry recommends saving 10 percent to 20 percent of your budget for unforeseen costs. Be ready to make compromises here and there and plan to do some of the work yourself if your hoping to keep costs down.
There are various ways to finance a remodeling project, and many professional remodeling contractors are familiar with available financing options. Be sure to research funding sources carefully and compare qualifications guidelines, interest rates, terms and tax considerations.
Finally, make sure you have a thorough and clearly written contract. It should include specific details about what the contractor will and will not do; a detailed list of materials for the project; approximate start and completion dates; total price, payment schedule and cancellation policy; and a minimum one-year warranty.
Sources: Kitchens.com; National Association of the Remodeling Industry (www.nari.org)