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Creating A Home
Improvement Plan
You’ve got your
eye on the out-dated kitchen or you think you might want to just
tear up your carpeting and install hardwood floors, but before you
start to rip out the cabinets or the carpet make sure to establish
some guidelines for your home improvement plan. A good home
improvement plan should take into account: budget, financing, scope
of work, functionality and aesthetics, resale value.
Budget Considerations.
One good way to
find out what you can afford is to simply get three estimates from
contractors. Discuss what you want with the contractor and if the
estimate is high, ask them how you can reduce the costs. The
estimate should be separated into cost of materials and cost of
labor. By getting a professional opinion first, you may find that
the bids are very similar and you have a good starting point for the
high-end cost of your project.
Now, you can begin
to factor in whether there is some work you can do yourself. This
will improve the amount of cash outlay necessary to complete the
work. Another way to get to meet your budget is to shop for a
cheaper source of materials or change the type of material used.
Either way, these are highly flexible items in your home improvement
budget.
Sources of Financing.
If one doesn’t
have the money, the inclination is not to do the home improvement.
Cash, however, is not the only way to pay for a home improvement
plan, you can also finance. If you find you don’t have enough cash,
you can use a home equity loan to finance the remodeling of your
home. Try to identify additional forms of financing in case you need
additional monies to complete the project. In the end, a home
improvement project should add to the resale value of your home for
it to be a sound purchase.
Scope of Work.
This is where a
good plan is essential. If you are planning a major remodel, you
will want some basic plans drawn up, preferably by a professional.
You don’t want to find out later that the wall you envisioned
removing for a more open space is a critical weight-bearing wall.
Similarly, you don’t want to plan for electronic appliances and
devices in an area where there are no outlets. If you plan on
revamping a kitchen, the dimensions of workspace and appliance real
estate are very important. Don’t try to eyeball it or you’ll end up
paying for it later in time, additional work, or wasted purchases.
By trying to define the scope of the work on paper first, you can
bypass many of the simple problems that arise from not having
thought the improvement plan out thoroughly.
Functionality And Aesthetics.
Obviously, we
don’t just want to substitute one thing for another, we want the new
home improvement to outshine the old room. We want it to work better
for us and we want that “ah” factor too. Have you done your research
on the functionality of the appliances and space arrangements? How
about the aesthetics and maintenance of the materials you chose?
Does the improvement help to accommodate the growing needs of your
family? Will it continue to be of service after 5 years? 10 years?
These are all factors that should be considered and weighed against
budget, scope, and resale value.
Resale Value.
This is a tricky
value that can’t really be foreseen that much. We know that kitchen
and bathroom remodels recoup the most on the sale of the house. No
home improvement will recoup 100% of the price it took to remodel,
however, if you are in a climbing real estate market that might not
matter. What you don’t want to do is to add a home improvement that
detracts from the value of your property. Adding a fifth bedroom in
a neighborhood of four bedroom homes would be detrimental to the
value of your home. Adding a swimming pool in areas where houses
with pools don’t sell well would also be considered an investment
that could not be recouped. Some people still do it anyways. The
point is that most home improvements are done to meet the needs of a
particular family and the desire for a more comfortable living
space. While resale value is important, it is just one of the many
considerations that have to be evaluated in a good home improvement
plan.
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