Financial Planning for Home Improvement

How to plan for home renovation
A year stuck at home and watching too much HGTV has resulted in some ambitious remodeling plans for most of us. But, remodeling your home has its pros and cons. The idea sounds fun and it can be. Updates and custom changes help give your home personality, make it your own, and hopefully increase its resale value in the future. But, renovations can also be time and energy consuming, not to mention expensive. The most important thing to have in order before undertaking any big remodeling project is money.

 

Use these tips from REcolorado Home Blog to help you save up for that special project and stay on track throughout the process.

 

Meet with a Financial Planner
The same way you will have to meet with a contractor to plan the logistics of your project and discuss wants and needs, you should have similar conversations with a financial planner. In fact, combining some of these meetings might help you keep money in mind throughout the decision-making and implementation process.

 

Create a Schedule
As you keep track of when materials will arrive, make sure to also track what money is being spent and when. Know the timeline of your project in general and as it pertains to finances.

 

Cut Expenses
Prioritize your home improvement project and remember what you are saving for. Are there other monthly expenses you can reduce? Try cutting back on monthly subscriptions or making attempts to reduce your energy use. Eat in for a few months. Maybe even consider refinancing to cut your monthly mortgage payment. Little changes and small efforts will add up to big savings.

 

Work in Small Increments
Once work is underway, you can keep things in check by staying in constant contact with your contractor and taking on one small project at a time, especially at first. Never bite off more than you can chew for your sanity and wallet’s sake.

 

Get Creative
Have conversations with your contractor about what can be repurposed and reused in different ways or in different parts of your home. For instance, it might be better to refinish your hardwood floors than to start over from scratch with new floors. Changes like this might often be not only the most cost-effective option but also the genuinely more appealing one. This approach also pays homage to your original home as it changes and evolves to meet various trends.

 

Sell Old Items
Remodeling often adds a lot of clutter to your home all on its own. Reduce the clutter you already have and make a few bucks by selling old furniture or items you no longer use. Post on Craigslist or Facebook Marketplace, maybe even host a garage sale. Purging is great way to start fresh with some extra dough in your pocket.

 

At Corken + Company, we want you to love your home just as much ten years down the road as the day you bought it. Let us know how we can help make adjustments in your home to better fit your family’s needs. If remodeling won’t do the trick, we can always discuss readying your home for sale and finding something new. We offer Real Estate Solutions without Limits and would love to review your options with you.

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