Property upgrades are essential, especially when you want to fix some obvious faults or prepare for a sale. But how often should you renovate your home?
Renovations can be expensive, and studies show that Americans spend about $400 billion annually on home renovations. Home improvement projects can have significant differences in scope and time requirements. Therefore, it’s critical to consider the project and determine if it’s necessary. And while the budget is crucial, you must consider other essential factors before deciding. Here are factors to consider:
1. Consider Your Budget and Source of Financing
Money is among the most critical considerations among the 76% of Americans who prefer a home renovation project over a new mortgage. How often should you renovate your home? An honest reflection on your finances and realistic budgeting are essential when deciding whether to proceed with a complete home remodel.
After understanding your financial stand and the amount you can put towards the project, take a close look into your loan options and other potential sources of funds. However, experts recommend you include a buffer if you encounter unexpected hidden costs.
Home equity loans, 203Ks, and mortgage refinancing are some of the most common funding sources. Nevertheless, the most suitable option depends on your financial situation and project needs. It’s prudent to discuss available options with a lender and determine the most suitable source of funds.
2. Consider the Total Costs of the Project
While most people base their cost expectations on magazines and TV shows, this may not be an accurate benchmark. Ideally, you should consult an experienced contractor and discuss the particulars of your renovation project to get a realistic estimate of what you expect to spend.
The exact costs depend on the scope of work and miscellaneous factors that may influence the overall cost since every project is different. However, it’s critical to have a clear idea about the design and features you want to include in your home.
Settling on one design and then changing your mind to include other features may call for the purchase of additional materials, and if you don’t have a flexible budget, you may not get the results you want. Consult your contractor and brainstorm how to save costs to ensure the available budget can cover all essential design features.
3. Duration of the Whole House Renovation Project
Most home renovation projects require a long-term commitment, and you must be willing to live through the process. While you may have come to terms with the project’s financial aspect, time is an important consideration, especially when you don’t have a secondary home.
For instance, most kitchen renovations that require reworking the floor, cabinets, countertops, and appliances can last up to six months. The timeframe can stretch further if you change the electrical wiring, plumbing, air conditioner, and entire ductwork. On the other hand, the average bathroom renovation can take up to three months.
If you reside in the same home when the project is in progress, you should be willing to make significant lifestyle adjustments. So, are you still wondering how often you should renovate your home? It’s important to understand that under some circumstances, you may not be able to reside in the house due to safety hazards often present in older homes. Therefore, it’s essential to consider your important life commitments and determine if the disruptions will pose unfavorable inconveniences.
4. Return on Investments
Home upgrade projects often improve the functionality of your property. But putting your money into a whole house renovation can pose a significant financial risk since not all renovations add value to your property.
If your primary goal is to boost your home’s value in preparation for a future sale, do thorough research on the specific renovations with high returns on investments in your neighborhood. For instance, moderate kitchen upgrades and storm-proofing projects have a higher ROI, but master suite upgrades can sink your money.
It’s important to consider the potential return on investment before you embark on a home remodel project. The average return depends on the renovations you intend to make. However, most home upgrades don’t repay the entire investment after selling. Some homes can recoup about 80% of the total costs, while others barely show dismal ROI, depending on the scope of work and market price.
Conclusion
Deciding to renovate your home fully can be daunting, but it helps guide your priorities throughout the project. Therefore, home remodels projects require careful consideration of various factors to determine viability. The ultimate decision depends on your current situation, needs, and budget. If you would like more information, please do not hesitate to contact us.