Maybe you’re thinking about renovating your home before listing it for sale on the Nanaimo real estate market. Or perhaps you plan on staying where you are because the location is absolutely perfect. In either case, the first step in renovating is to create a renovation budget.
In this article we’ll take you through the steps to create a renovation budget and also show you how to save some money.
How to estimate the cost renovating your home
Mark Cooper, a director of the Greater Vancouver Home Builder’s Association, was recently quoted in the Vancouver Sun as saying that “most interior-only renovations come in at about $100-$125 per square foot. Add in some new windows and exterior work, and that jumps to about $150.”
Renovating vs. buying a new home
Even if you plan on keeping your home forever, any renovation project should still proportionally add value. As a rule of thumb, you shouldn’t spend more than 10%-15% of your home’s value on a single room. For example, if your house is worth $500,000 then the maximum you’d want to spend on a kitchen renovation is between $50,000 and $75,000.
Figuring out where the money for renovation will come from
Before you decide what to spend your money on, you’ll need to determine where the money for your home renovation will come from. The answer is easy if you’ve got cash saved. Other ways to fund your project include a cash-out refinance or a home equity loan. Your real estate agent can give you a good idea of what homes comparable to yours are worth in the current Nanaimo real estate market and how much equity your home has.
Steps to create a renovation budget
Now you know where the money is coming from. Next, follow these steps to create your perfect renovation budget:
After that, it’s time for your home renovation to begin!
4 ways to save money on home renovations
There are ways to save money on your home renovation without cutting corners. Some of the most cost-effective include:
Four things to remember when renovating your home
Author Bio: I'm an experienced and enthusiastic Realtor & I define 'full service' as 'going above and beyond' for my clients. As your Realtor, I will be an advocate for you. Whether you are buying or selling I will work tirelessly to promote your best interests