When considering a home renovation, it’s worthwhile to consider the potential return on your investment. After all, not all renovation decisions result in an increase in home value or appreciation by a future homeowner. Careful planning can help you maximize your improvement decisions and increase the likelihood of seeing a return on your investment.
Here are a few ways to get the best return on a renovation investment.
Set a Reasonable Budget
Determining the best amount to invest in renovations is no exact science. The best method is to choose a reasonable amount to invest and work from there. Setting a budget not only keeps your finances under control, but it will also help guide decisions while making challenging choices more clear-cut.
In conjunction with your budget, a wish-list will be helpful. Writing down everything you hope to include in your renovation in the order of priority so that in the event a contractor’s quotation exceeds your initial budget, you can ax the lower priority items. Alternatively, if you’re set on including everything on your wish list, you might include lower cost options rather than higher cost options enabling you to be comprehensive.
Expert’s advice: Renovations can easily get carried away. The best way to prevent an out-of-control renovation is to allow your budget to dictate your decisions. As there are almost always overages, it is not recommended to work towards your maximum budget, as the end cost will inevitably be more. Consider working towards a lower budget with the assumption that additional costs will occur.
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