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Before you start drawing up plans for any addition to your house or a major bathroom conversion, identify the reason for your house improvement endeavor:

Does your kitchen require an update? Are you looking to convert an area to more usable space? Are you simply prepared for a change?

Understanding the motivation behind your endeavor influences the way you apply your budget, how you’ll focus on tasks throughout the process and whether you tap a specialist.

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

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

A renovation plan driven mainly by the need for maintenance will probably mean the majority of the resources goes toward hiring licensed experts and upgrading dated materials.

Based on were you reside, extensive work on the dwelling, electricity or plumbing may also require licences as well as an inspection.

Updating rooms. The plumbing might still be OK, but a 1980s kitchen may be an eye sore. Numerous homeowners redesign to bring an area out of decades past and into existing times.

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

As a result, consider breaking up your budget between functionality and the looks of the room. Many homeowners opt to wait until they update a room to deal with maintenance problems: For any project, unless it’s a big water leak, people wait until they’re able to fix or upgrade it.

Test out new styles. You might have redone the living room a decade ago, but those beige walls now help make your stomach churn. So you may be looking to tackle a redesign project simply to bring your home in step with present home decor trends. Oftentimes, this is a small remodeling job, so the budget can be geared toward paint, furnishings or other ornamental materials.

Because trends are, in general, rather short-lived, avoid taking on a significant restoration solely in the interest of embracing a fresh trend.

Getting ready to sell. Homeowners who are prepping their property for the market may need to make minor repairs, give rooms a brand new coat of paint or put in a trendy back splash to make buyers feel impressed whenever they tour the property.

When selling is the goal, renovations are aimed at capitalizing on the return on investment. There’s no need to set up a state-of-the-art kitchen when many housebuyers desire to customize it to their needs; restained 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 and their electric bills by making energy-efficient updates. Examples include include adding solar panels to the roof, insulation within the walls or a smart thermostat.

Budgeting for Your Renovation

Know how much cash you have to make renovations prior to starting your project, and research your options to find a better knowledge of just how much certain upgrades, materials and changes cost.

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

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

A significant portion of the increase in spending and idealistic expectations to the fact that homes are generally more costly today than they were a decade ago. The increased cost to purchase a home in addition to cost to book a contractor and buy materials outpace the typical increase in income. Inflation in the housing market is what’s putting people behind the curve.

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

Cash. Most owners don’t want to tackle additional debt to fund their house updates or remodeling. In reality, 85 % leverage their cash or savings. Necessary remodeling for system updates or, say, a water heater malfunction are often considered good reasons why you should tap a rainy day fund.

With cash, however, make sure to budget accurately from start to finish on the undertaking. You don’t have to get halfway through a home upgrade and run out of cash, leaving your bathroom unusable for the next 6 months while you save.