Thinking of renovating? Think of these five tips first.
Tip #1: Don't underestimate the cost of renovations
Homeowners consistently set unrealistically low budgets for a few of the most popular renovation projects. For example, on average, Canadians budgeted just under $4,200 for a new fence, but average actual costs came in closer to $11,700—about $39 per linear foot.
Tip #2: Seriously consider whether or not you are over-renovating
Many homeowners are convinced that they only way to increase the value of their home is to spend a lot of money on high-end finishes and expensive home remodels. But home renovations rarely, if ever, offer a $1 for $1 return. In fact, sometimes the simplest or least expensive updates can give the best returns.
Tip #3: Do the leg-work to set a realistic home reno budget
Get multiple quotes! Never settle on a contractor before first interviewing and getting a quote. Are you handy and have the time? If not you'll need to pay someone to do the work and that means taking all expenses into account. Always take into account extra costs. Most contractors suggest adding 10% to the contingency fund.
Tip #4: Figure out the finances, first
Before a hammer hits a nail you must first decide how you will pay for your home renovation project. Like all consumer spending, paying for a renovation is best done through savings. By saving up the money, you're more likely to stay on budget because you have more time to research costs and plan the project.
Tip #5: Be patient
Putting your home reno project on hold gives you more time to save up the money needed for this expensive endeavour. It also means avoiding costly mistakes. That's because a hasty, under-budgeted renovation can actually devalue your home and add little or no value to your home's fair market value.