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Before you start creating plans for any addition to your house or a major bathroom conversion, identify the reason for your home remodeling project:

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

Knowing the motivation behind your project affects the way you apply your finances, how you’ll prioritize tasks during the process and whether you tap professional help.

Here are five primary reasons you may wish to upgrade your residence.

Maintenance. Whether the house is five or 105 years of age, maintenance is needed to keep the whole thing working efficiently. This is especially true if you’re home is many years old, you’ll likely discover the electrical, plumbing and even the foundation may require a bit love to maintain a protected, stable structure for you and your family.

A renovation plan driven mainly by necessity for maintenance will likely mean most of the budget goes toward hiring licensed experts and upgrading out-of-date materials.

Depending on were you reside, extensive work on the structure, electricity or plumbing may require permits and an assessment.

Modernizing rooms. The plumbing may still be OK, but a 1970s bathroom may be an eyesore. Plenty of homeowners remodel to bring an area out of decades past and into current times.

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

Subsequently, consider breaking up your financial budget between functionality and the looks of the room. Many home owners opt to delay until they update a room to address maintenance problems: For any project, unless it’s a big water leak, people delay until they’re capable of fix or improve it.

Try out new styles. You may have redone the living room a decade ago, but those light brown walls now help make your belly churn. So you may be looking to tackle a remodel project in order to bring your house in line with present interior design trends. In so many instances, this is a small renovation job, and the funds could be focused on paint, furnishings or additional decorative materials.

Because trends are, in general, fairly short-lived, stay away from taking on a major restoration purely in the interest of embracing a new trend.

Getting ready to sell. Homeowners who are preparing their property for the market should make minor fixes, give areas a fresh coat of paint or install a trendy backsplash to make buyers feel wowed when they tour the property.

When selling is the goal, home improvements are aimed at capitalizing on the roi. There’s no need to set up a state-of-the-art kitchen when many homebuyers want to personalize it to their wants; restained cabinets plus a new kitchen counter may be sufficient to freshen up the area for sale.

Improving efficiency. Many home owners are looking to do their part to cut back energy waste and their electric bills by making energy-efficient upgrades. These may 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 improvements before you start any project, and research your options to get a better knowledge of just how much certain upgrades, materials and changes cost.

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

Either home owners are merely surprised how expensive products and materials are or … a small percentage of the home owners in fact choose more upscale products and materials for their remodel.

Much of the increase in expenses and idealistic expectations to the fact that houses are generally more costly today than they were a decade ago. The higher cost to purchase a house in addition to cost to book a contractor and procure materials outpace the average boost in income. Rising prices in the real estate market is what’s putting people behind the curve.

Additionally, if your renovation project involves a part of the house that hasn’t been touched in a while, who knows what you’ll find. It’s often hard to set a budget before demolition for a major restoration begins because there’s no knowledge of delayed maintenance or systems issues until they’re visible. We can’t see behind your walls.

Cash. Most owners don’t wish to take on additional debt to acquire their home upgrades or restorations. In reality, eighty five % leverage their funds or cash saved. Essential restorations for system updates or, say, a water heater break down can be considered good reasons to tap a rainy day fund.

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