Everyone knows that home remodeling or renovation of one room is not cheap: you will need at least a financial plan. Do not think that remodeling is a simple and quick task and that you will cope with it in a matter of days. Speeding up the home renovation is possible only with the help of a contractor company, and it will take at least a week.
However, do not be discouraged: today, there are many ways and tips to minimize the costs and risks of home remodeling. On average, according to statistics, home reconstruction costs about 47 thousand dollars. Some homeowners spend even more than 100 thousand dollars to completely change everything. If your budget is lower, you may also equip and renovate the house, change the interior design or add accent colors.
Here are the universal steps for home renovation, considering finances and design ideas. Follow them to make all your wishes come true and make the house shine in a new way!
Remodeling Cost Factors
When remodeling, you need to consider everything and work out the reconstruction plan in detail. In general, several key factors affect the final cost of home remodeling.
1. Age of houses
Honestly, the old home remodeling cost is always more expensive because you will need more materials and design ideas. In this case, it is better to immediately think about what will be changed and what will remain the same. Usually, contractors offer several reconstruction projects and even 3D visualization to see the details.
To a greater extent, the home renovation cost depends on the location and area of residence. The richer your area is for living, the higher the cost of reconstruction. For instance, in New York, spending on home remodeling is twice as much as in Denver, Colorado.
3. House size
There is nothing to explain here: the larger your house is, the higher the cost of reconstruction. According to statistics, the average reconstruction cost in a 1000-square-foot house is $ 19000.
4. Materials and contractor
Another factor affecting remodeling prices is the quality and cost of materials. Indeed, eco-remodeling is more expensive, as well as the choice of expensive furniture. Secondly, the choice of a contractor is also noticeable in terms of finances. When choosing a company, form a budget in advance to meet the estimate.
5. Remodeling rooms
Finally, any renovation plan includes information about all remodeling rooms. As a rule, remodeling the kitchen and bathroom is more expensive than the living room and bedroom. On average, the renovation cost of the kitchen is about $ 20000, and the bath is up to $35000.
The most significant step on the way to home remodeling is drawing up a realistic budget. Almost always, remodeling hits the pocket financially, so you need to prepare thoroughly for such a step. Below are practical steps for budgeting that will minimize spending on unnecessary things.
1. Write down all ways of financing
The first step is to make a list of all financial sources. Write down what income you will pay for home remodeling. In general, there are several ways of financing, which you will learn about below. The article presents various renovation loan options that will help you pay the cost according to the estimate.
2. Imagine the ideal remodeling option
Unfortunately, often people, having made a home renovation, immediately rush to redo everything. In any case, it is the result that people did not initially think through the idea of remodeling. For this reason, immediately decide how you want to see your house or rooms. When drawing up an estimate, the contractor will necessarily request such information: the location of doors, materials, furniture design, and more. The more ideas and details you provide, the more accurate the result will be.
3. Making estimates
After the two above actions, the contractor enters into the matter. Such companies usually coordinate all nuances and details to avoid discrepancies with the client. To collect information, the contractor makes an estimate, where you describe your wishes and ideas. Moreover, the estimate plays a significant role in not going beyond the budget. Keep in mind that in some companies this service is paid.
4. Consider unforeseen circumstances
What else you need to think about in advance is unforeseen situations. Often, home renovation projects end up being more expensive than the original budget. Therefore, when drawing up a financial plan, include additional expenses in case of unexpected circumstances.
Following these rules, your home remodeling will be fast and less energy-consuming.
Here you will know about the options for financing home reconstruction: today, the most common options are lending and refinancing. All the details are below.
- Loan 203 thousandIf you want to move into a house where contractors will do remodeling, you should consider an FHA 203k loan for home improvement. A nice bonus of such a loan is low interest rates and responsible control of the appropriate authorities.
- Cash-out refinanceRefinancing through cashing out is another way to finance remodeling. This type includes refinancing the current mortgage and getting more money. The extra money for loans is issued in cash, which you can spend on anything, including renovation.Refinancing involves the best interest rates but with a reservation on the collateral. If you do not pay the monthly payment, you will lose the collateral property.
- Capital loanA home equity line of credit is not similar to a credit installment plan and has its advantages. In this case, you have the opportunity to take out a loan secured by your capital. The lender independently determines the maximum for this loan. This type of loan is suitable for home remodeling because it allows you to quickly and flexibly solve problems. However, if there are no monthly payments, you risk losing the deposit.
- Personal loanFinally, there is the so-called personal loan for financing. Such a loan has high interest rates and does not involve a pledge of property.
Kitchen Remodeling: Basic Steps
The most expensive remodeling is the kitchen renovation. The average cost of such remodeling is about $ 50 000. Undoubtedly, it all depends on your ideas, the price of materials, and the kitchen size. But if you want a first-class remodel for the long term, you will need a lot of money.
Before starting the remodeling kitchen, write down the plan and select the type:
- Updating the kitchen with the support of the designer
In any case, you will need a lot of ideas and strength to realize all your wishes. In the first option, find a contractor with many years of experience and a professional designer on reviews. Next, make an estimate, pay for the first part of the remodeling, and order furniture. Many products have a guarantee, and so you may return the item to the store.
All contractors work considering the client’s preferences: they will do everything so that the remodeling does not cause any difficulties. On average, the cost of furniture is up to 15,000 dollars. Also, keep in mind that maintaining the previous kitchen layout will reduce the cost of reconstruction.
During the kitchen remodeling, you will not be able to live at home: the annoying sounds of a puncher and a hammer will not give you rest. In such circumstances, take care in advance of where you will spend your time. You may move in with friends or relatives while the contractors are remodeling the house.
As noted earlier, any home remodeling is a waste of a lot of money. However, for financial efficiency, you may follow these tips:
- Careful selection of materialsChoose materials according to your budget and quality. Sometimes excessive saving of money leads only to troubles. It is best to invest in high-quality eco-furniture that will last you a long time.
- Keep the layout the sameRedevelopment of plumbing, pipes, and other electrical elements is more expensive than conventional remodeling. If it is not critical for you to leave the previous layout, do not change it. It is better to add money for interior design.
- Make a financial planAny home remodeling begins with a step-by-step plan, including planning, estimates, contractors, finances, and ideas. Do not forget about this step to prevent unnecessary waste of time and money.
Thus, if you follow all the rules and consider the features of any remodeling, you will quickly cope with this task. Do not miss the chance to work with contractors and designers, because this way you will finish the renovation of the house faster.