Home Mortgage Top Ways To Avoid Costly Home Renovation Mistakes

Top Ways To Avoid Costly Home Renovation Mistakes

Planning a home renovation would usually require adequate financing, proper budgeting, and a careful outline of the projects to be done. The outbreak of the global pandemic has made many people spend more time at home in 2020; this means people have adequate time to carry out more home renovation activities. It is however imperative to know the ways to avoid costly home renovation mistakes when planning your home remodelling.

Approximately 3 out every 5 American homeowners have embarked on one or more home improvement work since the 1st of March 2020 and spending up to about $6,438 on the average. This is according to an online survey conducted by The Harris Poll among over 1,414 homeowners.

To complete your projects without experiencing any form of setback, homeowners must steer clear of the following home renovation mistakes.   

Home Renovation Mistakes
Home Renovation Mistakes

Examine The Return On Investment (ROI)

It is not every home improvement work that is created equal when it comes to returns on investment. Some improvements would lead to a higher selling price while some others would bring about loss of money if eventually sold. The home improvements work with the highest return on investment is minor kitchen remodeling, vinyl siding replacements, and replacing the garage doors.

These home renovation exercise could bring in about 80% of the renovations costs respectively. Avoid textured or patterned wallpaper, trendy light fittings, and much carpeting. All these could lower the resale worth and value.

So, if you want to maximize resale value, use neutral colors and reduced patterns. Therefore, one of the renovation mistakes in kitchen remodeling is installing colorful custom tiling. However, this could turn-off intending buyers while suiting the owner of the property.

Who Are Your Contractors?

It is important to get quotations from different contractors when deciding on whom to hire. Also, it’s essential to take a look at their credentials and check their references. It is advisable to work with licensed contractors who are members of reputable trade associations. Reputable contractors are members of the National Association of Home Builders or the National Association of the Remodeling Industry.

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A good contractor, therefore, guarantees good work and gives a warranty. Besides, check reviews of the company you are considering on Better Business Bureau ratings for complaints and how they are tackled. So, after choosing a contractor, ensure you put your agreement into writing.

Have A Budget

Creating a budget would make you not run of cash during the process of your home remodeling exercise. Also, the project could become more expensive if care is not taken. So, if your home renovation is more than the money at hand, a home improvement loan is the sure way of subsidizing the work without running out of cash.

Once you have created a budget for yourself, ensure you stick to it. One of the costly home renovation mistakes to avoid is making impulse buying decisions that do not fall within your predetermined budget. So, have a discussion with your contractor on the cash available for the project and also create room for emergencies or unforeseen spending.

Get Home Renovation Permit

You might be wrong having a belief that your home renovation does not require a building permit. Small cosmetic fixes can be carried out without obtaining any permission from the local government whereas, major works such as breaking down a wall or reshaping a bathroom or kitchen would certainly need a permit from the authorities.

Besides, one error done when carrying out bathroom renovation is having the thought that it does not require a permit because it’s a small space; however, any structural adjustment, plumbing, or electrical work needs a permit. You must inquire from your contractor when getting quotes for necessary permits.

These renovation mistakes come with both short-term and long-term implications. The projects might be shut down abruptly or imposing the payment of fines for carrying out the work without the required permits. Besides, there might be further sanctions if you manage to complete the project without the necessary permits – the inability of securing a mortgage, difficulty selling the property, or reduction in the value of the property.

Use The Correct Funding Option

Available information has it that as of the 1st of March, 34 percent of homeowners who carried out home renovation projects used available cash at hand for funding the projects, 25 percent used money that has been saved for the renovation while 14 percent used funds from their economic stimulus check.

So, once these projects are not being funded to the detriment of other pressing things, making use of personal savings is a good way of avoiding payment of interest on your home renovation work.

Therefore, explore your funding options. Some of these options are personal loans, cash-out refinance, credit cards, or even home equity lines of credit. These options come at varying costs based on interest and the duration to pay-off the loan.

Adequate Understanding Of Price And Quality Trade-off

It is normal to look for avenues for saving money knowing that it would cost you hundreds or thousands of dollars to carry out your renovation work. However, it is advisable not to automatically cut corners by making use of cheap materials.

Speak with your contractors on a trade-off between price and quality for the projects – this would put you in the best position to select the best quality product that suits your budget. If this is not done, you could end up making costly repairs after a few months of remodeling.

Therefore, you need to know that home renovation would boost the market value and the aesthetics of your property if home renovation mistakes are avoided. Having a good budget, knowing who your contractors are, and using quality materials would make you avoid costly home renovation mistakes.

In conclusion, these costly home renovation mistakes highlighted above are common errors which homeowners make from time to time. If you are not sure about the right decision to take on certain projects, talk to a professional, and express your worries.

Finally, ensure your project is financially secured to avoid emergencies and unprecedented expenses.

 

 

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