An entire home remodel is a significant project that will boost your home’s curb appeal and increase your overall investment. However, it can be a feat to budget for the right amount of costs. What is the best way to budget for a whole home remodel? Here are some tips for your next remodel project.
Dream Big
What are your plans for your whole home remodel? It may help to have a vision board with a visual concept of what you want to update. Write down everything you’d like to upgrade, such as siding, trim color, roofing, etc. You may find that everything you could ever want is within budget; even if it’s not, you can make a plan to work within your budget. Some contractors (including Precision Contracting Services) include a blueprint or design rendering in your estimate to give you a good idea of how much bang you can get for your buck!
Prioritize Your Projects and Budget for a Whole Home Remodel
Whether you are repairing foundational or stucco damage within your walls or simply in the mood for a new look and feel, it’s a good idea to prioritize your projects based on the estimated return on investment. According to the Remodeling 2022 Cost vs. Value Report, below is an estimated value of each home remodeling project. For example, in the state of Pennsylvania, it’s estimated that upgrading your siding to James Hardie fiber cement will provide a resale value of $23,929!
- Fiber cement siding replacement – $23,929
- New roofing – $36,092
- New windows – $21,033
- Attic insulation – $10,842
- New entry door – $1,531
- Garage door replacement – $4,139
- Composite deck addition – $26,246
Keep in mind that the resale value of your home may also heavily depend on the housing market, your neighborhood, and other similar homes for sale in the area.
Collect Bids
Once you know what you’re looking for and have a general idea of how much return you can get for each project, you can reach out to contractors for some bids. Keep in mind that your investment will last the longest when you work with contractors who are licensed, bonded, insured, and who don’t subcontract their work. Also, pay attention to the type of materials used in the estimate/quote. Some materials last longer than others and are worth the extra dime upfront.
Ask About Financing Options
It’s no secret that home renovations take a lot of money. But when talking about a 20-30-year investment, it’s worth the dime to boost your home’s value. Be sure to check with your contractor about financing options. Or, consider getting a HELOC loan or refinancing your home.
Specific home projects, like siding installation or new additions, can cost a pretty penny. Fortunately, these types of renovations tend to increase the value of your home. That said, the investment can pay off if or when you decide to sell. The steep cost of remodeling your home may lead you to consider a loan to finance the project. There are several methods for borrowing money for this type of project, including:
- HELOC, or home equity line of credit, may allow you to borrow against your home’s equity (within a specified limit). You can tap into the line as needed.
- Home Equity Loan – This is also called a “second mortgage,” It can allow you to take out cash for the whole project upfront.
- Refinance – This may decrease your monthly payment if the current interest rates are better than when you purchased the home or if you choose to stretch your mortgage out for a longer loan term. The money you save each month could be set aside for your renovation project.
- Cash-out Refinance – If you’ve lived in the home a while and have substantial equity, you could refinance your existing loan for an amount higher than what you owe. Doing this means you could pay off your original mortgage and have cash left over for renovations.
There are many great options for financing your home remodel. There’s no need to break the bank or stay away from big home exterior renovation projects because the finances are scary. Once you have a well-thought-out plan with all of the details, your home project can be done with success.
Schedule a Free Consultation with Precision Contracting Services, LLC
We know your home is your most significant investment, and you want it to be at its best. When you work with Precision Contracting Services, LLC, you deal with an experienced, licensed, and insured contractor in Downingtown, PA. Certified in residential and commercial construction, and with experience in James Hardie siding installation, roofing, door installation, window installation, decks, additions, and more, we provide expertise and insight to deliver a quality result. You can schedule a free consultation with us, where you’ll get the answers to all your questions.
Want to learn more about creating a budget for a whole home remodel in PA? Check out our Ultimate Guide to Remodeling Your Luxury Home.