Many buyers are interested in buying a fixer upper to renovate and turn into their dream home. While it’s an exciting project, it can also be stressful and expensive if you don’t plan ahead, anticipate extra repairs and create a reasonable budget. Follow these helpful steps for creating a renovation budget and things will go smoothly!
Set Your Goals
In the beginning, before worrying about budget, write down all the goals you hope to accomplish with your renovation. Decide what is most important to you and be detailed about all the elements you want to change. Having specific goals in mind will help you estimate costs and determine a budget. Having all your goals laid out will let you go back and update things as you figure out what you can realistically afford.
Professionals and Equipment
Some buyers prefer the D.I.Y route to home renovation, others choose to use a contactor or home designer. Even if you do decide to take on most of the renovation on your own, you may need to hire professionals for more complicated jobs like plumbing or wiring. You’ll also need to determine what equipment you may need to rent or buy.
Crunch the Numbers
Now that you have your goals in mind and know what professionals and equipment you’ll need, it’s time to figure out your budget. You can do some research online to see the average cost of renovations. Keep in mind that different factors effect cost. For example, costs will vary between different types of materials, fixtures and appliances. It’s always recommended to include a contingency budget, as renovations can sometimes cost more than originally estimated or take more time.
Call around to different professionals and ask for cost estimates. Make sure to research professionals and look for reliable reviews online or ask friends and family for references.
Review and Revise
After deciding on a budget and getting quotes, you’ll need to sit down and go over everything one last time. You may find that you’ll need to revise your budget, hold off on certain projects for another year, or find cost saving measures.
Home renovation can be a big project to tackle, but with proper preparation this is a great way to turn an older home into something you truly like. Let us know if you are looking for a home to renovate or flip. We have access to homes that are not listed in mls!