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Before you start drawing up plans for any addition to your home or a major kitchen conversion, identify the reason behind your home remodeling endeavor:

Does your bathroom require an update? Are you looking to convert an area to more usable space? Are you simply ready for an alternative?

Knowing the motivation behind your endeavor influences how you apply your finances, how you’ll prioritize tasks during the process and whether you tap specialized help.

Here are five key reasons you may wish to update your house.

Maintenance. Whether the house is 15 or 105 years of age, maintenance is needed to keep the whole thing working smoothly. Especially if you’re home is many years old, you’ll likely discover the electric, plumbing and even the foundation may require a little love to maintain a safe, stable structure for you and your family.

A restoration plan driven largely by necessity for maintenance will probably mean most of the budget goes toward hiring licensed professionals and replacing out-of-date materials.

Depending on were you reside, far-reaching work on the structure, electricity or plumbing may also require licences and an inspection.

Modernizing rooms. The plumbing may still be OK, but a 1970s bathroom may be an eye sore. Plenty of home owners redesign to bring a space out of decades past and into existing times.

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

Subsequently, consider breaking up your budget between function along with the appearance of the room. Many homeowners opt to wait until they update a room to address maintenance problems: For any project, unless it’s a great water leak, people wait until they’re capable of fix or improve it.

Test out new styles. You might have redone the living room 10 years ago, but those light brown walls now make your stomach churn. So you may be looking to tackle a redesign project simply to bring your property in line with present interior design trends. Oftentimes, this is a little renovation job, and the budget could be geared toward paint, furnishings or additional decorative materials.

Because trends are, by definition, fairly short-lived, avoid taking on a major restoration solely for the sake of embracing a new pattern.

Getting ready to sell. Homeowners who are prepping their house for the market may need to make small repairs, give rooms a brand new coat of paint or install a stylish back splash to make buyers feel wowed whenever they tour the property.

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

Improving efficiency. Many homeowners need to do their part to reduce energy waste plus their utility bills by making energy-efficient upgrades. These may include adding solar panels to the roof, insulation within the walls or a smart thermostat.

Budgeting for Your Renovation

Know how much money you have to make renovations prior to starting your project, and do your research to get a better knowledge of just how much certain upgrades, material and changes cost.

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

Either homeowners are just surprised how expensive products and materials are or … a fraction of the homeowners in fact choose more enhanced products and materials for their remodel.

Much of the increase in spending and idealistic expectations to the fact that houses are generally more expensive now than they were 10 years ago. The increased cost to buy a home in addition to cost to hire a contractor and procure materials outpace the typical boost in income. Inflation in the real estate market is what’s putting people behind the curve.

Plus, if your renovation project requires an element of the house that hasn’t been touched in a while, who knows what you’ll discover. It’s often a challenge set a budget before knocking down for a major restoration begins because there’s no knowledge of delayed maintenance or systems concerns until they’re visible. We can’t see behind the walls.

Cash. Most owners don’t wish to take on additional debt to acquire their home updates or remodeling. In fact, 85 percent leverage their cash or cash saved. Necessary remodeling for system updates or, say, a water heater break down can be considered good reasons why you should tap a rainy day fund.

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