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How to Plan A Budget for Home Renovations?
With the holiday season right around the corner, a lot of people push home remodels aside so
that they can celebrate with loved ones and wrap plenty of gifts under the Christmas tree.
However, if you are planning a major home renovation project in the new year, you will have to
be diligent with budget planning to ensure that your Cambridge builders will stick to it. Most
contractors design projects around a client’s budget and homeowners should always know
what this figure is upfront and be realistic in terms of what they can afford. If you are
considering a significant home renovation soon, here are ways you can set priorities and
establish a budget to avoid a stressful financial situation and project delays.
Determine Clear Goals
Before researching online and contacting any builders in Cambridge to discuss your project, ask
yourself why you want to renovate your home in the first place. If you are remodelling a kitchen
for additional counter space, do you want this to entertain more guests? Determining your
needs and goals for such a project is the most crucial step to establishing the right budget.
Be Very Specific
Instead of rushing to crunch those numbers to let the Cambridge builders know how much
work needs to be done, you should carefully think about the specific details you want. A home
renovation requires big decisions, and you need to consider precisely the type of finishing and
materials you want the builders to work with before they pick up their tools. For example, for a
kitchen remodel, you might prefer stainless-steel appliances, or decide between carpets and
hardwood floors for the living room. Your contractor will need to know these details and your
choices so that they can help you formulate the best budget to fulfil all your needs.
Return on Investment
If you are planning on permanently staying in the home, it is natural to personalize it as much
as possible and splurge on your creative ideas. However, this is tricky if you might want to sell
your home several years down the line. Before planning a renovation, you should think about
the resale value of your home and the return on your investment after the project is complete.
This is usually based on how much the home is worth on the market, and some improvement
projects can either raise your resale value or lower it.
Get Accurate Quotes
Your builders in Cambridge should provide you with a “Hard” or accurate quote rather than a
basic estimate of the project. The hard quote will consist of a detailed outline of your entire
cost breakdown and how long the renovations will take to finish. Many contractors might
hesitate to give you this information at first because it takes a lot of time to determine the right
quote. They might try to offer a time-and-materials contract where you pay as you go, but it is
always more secure signing a fixed-price contract. This way, you will send your Cambridge
builders a lump sum upfront and avoid any surprises when the project is underway.
Prepare Emergency Funds
No matter how well the project is coming along, you should still put aside around fifteen
percent of the total cost in case of any emergencies and unexpected expenses. This is because a
lot of work is unknown until the builders start hammering things down, and you could suddenly
discover mould behind the plaster, asbestos, or not have the right electrical setup. Even if there
are no more expenses and the project is complete, you can use this extra money from the
emergency fund to decorate with brand new furniture.
