While new construction costs are at an all-time high, many are dreaming about the possibilities of remodeling and improving their current home situation.
February and March are typically some of the busiest months for home remodels. From kitchens and dining rooms to bathrooms and family rooms, we see a ton of homeowners who are investing in upgrading their homes.
As you dream about the possibilities, here are 8 things to consider:
- Identify your goals
Like most things, a successful remodel starts with identifying your goals. Is your goal to have more function out of your home layout? Or maybe it’s to have a dedicated play area for your kids? Or maybe it’s to let more natural light in to brighten up your living area? Whatever it is, make sure you can clearly identify why you want to remodel so when you’re faced with decisions along the way, you can see if they line up with your goal.
- Prioritize projects with an ROI
It might happen that your goals and your wants are more than you can bite off at this time. Maybe it needs to be a phased approach, or maybe you can only do some of it now. Consider prioritizing projects that have a return on investment (ROI) associated with them. If you decide to sell your home in 2 years, will this remodel add value? Hopefully the answer is yes.
- Consider seasonality
As you’re thinking about your timeline, consider when it’s the busiest season for your vendors and contractors. Since building season usually starts in the spring in Minnesota, remodels are often done in the late fall, through the winter, and into the early spring because of the availability of contractors. Since remodels take place indoors for the most part, they can be done during a contractor’s “off-season,” which may result in a better rate.
- Evaluate financial options
How will you be paying for your remodel? Will you be paying cash, taking out a home equity loan, or a home equity line of credit? Further, is now a smart time to consider refinancing your home and rolling your remodel into your mortgage? Consult your real estate lender to talk through the options and determine which makes the most sense for you.
- Set a budget
The housing experts generally say not to spend more than 10-15% of your home’s value on the remodel of any given room. So, if your house is worth $100,000, it might not be wise to spend over $15,000 on a remodel of a single room. Of course, the nature of your remodel will play a big role in that as well.
- Factor in unexpected expenses
In almost any project, there will be overages. This could be labor, material, or finishings. The industry average for overages is between 10-20% of your original budget.
- Check references
One of the quickest and easiest ways to get a feel for a service provider is to call their references. If possible, we encourage you to call references that they worked with a few years ago, those people have experienced how their work holds up over time and how the contractor has addressed any issues that have come up since.
- Support local businesses when you can.
As always, we encourage you to support our local builders, contractors, shops, and service providers when you can. There are so many great businesses that can provide you with an excellent product, while also reinvesting into our communities by ways of little league sponsorships and other local community involvement.
This is a fun process, and the prospect of the finished product is even more exciting! Deerwood Bank is here to help you dream and plan your home remodel, and we’ll work with you to determine the best financial options for you and your family!