When people think of ways to add value to their homes, they often worry about the high costs that can be associated with residential construction. But this doesn’t necessarily have to be the case. There are dozens of ways to add long-term value to your home without breaking the bank.
And these solutions come in all shapes and sizes. There are technologically advanced options, and there are simple alternatives. Some have a large upfront cost, and some are surprisingly affordable. Whatever form they come in, they are sure to save you money in the long run.
How to Create a Detailed Budget
One of the most important first steps to any home improvement endeavor is drafting a detailed and practical budget. This will help you balance your aspirations with what is actually possible.
Most often it is recommended to spend no more than 10 to 15% of your home’s total value on any one room. Spending more than this on a single renovation will not proportionally add to the value of your home. For instance, if your home is worth $100,000, then you should spend no more than $15,000 on a new kitchen or bathroom.
It is also worth knowing the average cost of renovating a room. Kitchens are generally the most expensive at anywhere from $4,000 to $60,000 dollars. Bathrooms are cheaper than this but can still cost you $2,500 to $25,000.
Step 1: Decide on Your Priorities
The first step in creating a detailed budget is to decide on what you most desire out of the home renovation. Ask yourself questions that will help you decide on what’s truly important.
- What are you willing to compromise on?
- What are you willing to spend extra on?
- Is the goal of this renovation to improve the aesthetic of a room or the function?
Step 2: Collect Cost Estimates
Once you have decided on the goals of your project, it is time to begin doing some research on how much they might cost. You can use these estimates to tweak your goals if necessary. For instance, if the cost of one of your goals is much steeper than you expected, then it may fall further down on your list of priorities.
Remember that these expense estimates are just that – estimates. The actual price tag associated with the project could fluctuate depending on variables like cost of materials or cost of labor.
Step 3: Request Bids from Multiple Contractors
After you have refined your project goals by researching estimates, you can begin speaking to contractors. This is when you’ll find out what the final cost of the renovation should be, assuming they don’t run into any major issues.
It would be wise to request a bid from more than one contractor, as they will often have different price expectations. Finding a contractor who fits within your budget is important, but it is also important to find a contractor with who you work well. Finding the cheapest price is important but finding a contractor that listens to your goals and will work with you to make them happen is paramount.
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Upgrades That Will Save You Money
Strategic improvements are upgrades made to your home with the direct intention of adding value to your property. Many of these upgrades can make your home more efficient and save you money over time.
Programmable Thermostat
Installing a programmable thermostat is one of the cheaper methods of making your home more efficient. Many of us waste a lot of energy by running the air conditioning or heater longer than what is necessary to actually meet a comfortable temperature. By automating your thermostat, you can avoid this waste of energy and money.
Many programmable thermostats can even be given a schedule to follow that can make it easy to reach different optimal temperatures at different times. For example, you can set your air conditioning to turn off shortly after you typically leave for work when the home is empty and doesn’t need to be cooled. Then you can have it turn itself back on about half an hour before you return so it is comfortable when you arrive.
Insulation
Proper insulation is another improvement that can save money and energy over the duration of months or years. This is especially important during colder months when a large amount of heat is lost through windows and walls.
Take the time to replace old weather strips around windows and doors. It is fairly cheap, and you’ll likely make the money you invested in the process back within the year. You can also add more insulation to your attic relatively cheaply, which will help keep the heat in on those cold nights.
Top Photo by Rene Asmussen from Pexels.
