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How To Tips: Create a Home Renovation Budget

Get an Idaho Private Money Loan for Rental Property Upkeep

Now is a great time to start planning for home renovation projects.

One of the first and most important steps of any home improvement project is a well-thought-out budget. Before beginning any renovation, it’s important to have a clear understanding of costs.

Follow these tips on how to set – and stick with – a budget for your renovation project.

How to Budget for Home Renovations

Cost estimate: Different renovations add different values to a home. Spend no more on any room than the value it will add. Helpful formulas are to spend 5%-15% of your home value on a kitchen renovation and 3%-7% on a bathroom renovation. Example: If your home is worth $300,000, spend $15,000-$45,000 on the kitchen. The HomeAdvisor’s True Cost Guide provides helpful insights into costs and what to expect.

Financing: How will you pay is as important to know as how much it will cost. Renovations cost money, plain and simple. Research financing options well in advance of your project to determine which is the best for you.

Quotes: Once you know what you can afford, get contractor bids. Keep in mind that the lowest estimate may not necessarily be the cheapest or best way to go. It could be a warning sign. Do your research and get referrals you can count on.

Stick to it: Once you launch your renovation project, stay with the plan. You should budget for the unexpected and hidden costs that will inevitably arise. But don’t be tempted to use your contingency fund for “extras” or to change plans. It will cost you in the end.

Talk to our Idaho Private Money Lender Team About Renovation Financing

Our Gregory M. Russell private money loan team has helped real estate investors with property upgrades and house flips for over thirty years. As experienced hard money lenders, we know the Idaho real estate market and can help you meet your goals. If you need financing and conventional lenders have said no or can’t offer a timely turnaround, talk to us. Our easy qualify hard money loans are based on your available equity. Our application process does not require the credit and employment stipulations asked by banks. One simple phone call or our simple online loan request form will get you started. Call 1-888-477-0444. Your dream renovation is within reach.