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Before you start drawing up plans for any addition to your home or a major kitchen conversion, understand the reason behind your home improvement project:

Does your plumbing require an update? Are you hoping to convert an area to more usable space? Are you simply ready for a change?

Knowing the motivation behind your project affects the way you apply your budget, how you’ll prioritize tasks throughout the process and whether you tap specialized help.

Here are five primary reasons you may want to update your house.

Maintenance. Whether the house is five or 115 years of age, maintenance is required to keep everything working smoothly. Especially if you’re home is many years old, you’ll likely find the electrical, plumbing and even the foundation may need a little love to maintain a protected, stable structure for you and your loved ones.

A renovation plan driven mainly by necessity for maintenance will probably mean the majority of the resources goes toward hiring qualified professionals and replacing dated materials.

Depending on were you reside, extensive work on the structure, electricity or plumbing may require licences as well as an inspection.

Modernizing rooms. The plumbing might still be OK, but a 1980s bathroom may be an eye sore. Numerous home owners remodel to bring an area out of decades past and into current times.

For a bathroom or kitchen, much of the renovation budget might go toward new, state-of-the-art appliances. These upgrades may also involve high-cost materials like marble, new tile and custom cabinets.

Subsequently, have a look at breaking up your financial budget between function and the looks of the space. Many homeowners choose to delay until they update a space to address maintenance problems: For any venture, unless it’s a big water leak, people delay until they’re capable of fix or improve it.

Try out new styles. You might have redone the living room 10 years ago, but those beige walls now help make your belly churn. So you may be looking to tackle a remodel project in order to bring your home in step with present interior design trends. In many cases, this can be a little remodeling job, so the budget could be geared toward paint, furnishings or additional decorative materials.

Because trends are, by definition, rather short-lived, stay away from taking on a significant restoration purely for the sake of embracing a new pattern.

Getting ready to sell. Homeowners who are preparing their home for the market should make minor repairs, give rooms a fresh coat of paint or install a stylish backsplash to make buyers feel wowed whenever they tour the property.

When selling is the objective, renovations are geared toward capitalizing on the roi. There’s no need to set up a state-of-the-art kitchen when many homebuyers desire to personalize it for their needs; restained kitchen cabinets and a new kitchen counter may be sufficient to freshen up the area for sale.

Improving efficiency. Many homeowners are looking to do their part to cut back energy waste plus their electric bills by making energy-efficient upgrades. Examples include include adding solar panels to the roof, insulation inside the walls or even a smart thermostat.

Budgeting for Your Renovation

Know how much cash you have to make renovations before you start any project, and do your research to find a better knowledge of just how much certain improvements, material and changes cost.

Typical home remodeling costs. Chances are, the cost you have in mind won’t get you as far in a project as you may think.

Either homeowners are merely surprised how expensive products and materials are or … a small percentage of the homeowners actually choose more enhanced products and materials for their own remodel.

A significant portion of the increase in spending and unrealistic expectations to the fact that homes are generally more costly now than they were 10 years ago. The increased cost to purchase a home as well as the cost to book a contractor and buy materials outpace the typical boost in income. Rising prices in the real estate market is what’s putting people behind the curve.

Plus, if your renovation project involves an element of the home that hasn’t been touched in a long time, who knows what you’ll find. It’s frequently a challenge set a budget before demolition for a major restoration begins because there’s no knowledge of deferred maintenance or systems concerns until they’re visible. We can’t see behind the walls.

Cash. Most homeowners don’t wish to tackle additional debt to fund their house upgrades or restorations. In reality, 85 % leverage their cash or savings. Essential restorations for system improvements or, say, a water heater break down are often considered good reasons why you should tap a rainy day fund.

With cash, however, make sure to budget correctly from beginning to end for the project. You don’t want to get halfway through a bathroom remodel and run out of cash, leaving your bathroom unusable for the following 6 months while you save.