When you are planning to do home renovations with a view to preparing your home for sale, it’s very easy to go over budget. Many homeowners think that if they spend a lot of money on renovations, they will end up getting that money back in a higher selling price. That may not necessarily be the case.
The idea is to fix up your home to make it attractive to a potential buyer, but not go overboard and make the renovations so specific that the house will only appeal to a certain segment of the market. You also don’t want to put a lot of money into renovations if you will be selling your home in the near future and won’t be able to enjoy them.
How to Stay on Budget and Not Overspend
- Instead of setting your renovation budget at the high end plus $X for contingencies, start with your maximum as the level you have set for contingencies and work down. Deduct 10-15 percent for contingencies from the figure you have set for your budget. This number is your new “budget” for the job.
- Review the renovations you want to make to ensure that ones you are making will add value to your home.
- Shop around when looking for materials for the jobs you want to have done at your home. Look at big retailers, small suppliers and online to see where you can get the best value for your money. Thoroughly calculate the cost of materials, including taxes and delivery charges, if any, so that you know exactly how much you will be spending before you make any decisions.
- Ask your contractor (if you are working with one) where to get the best prices on home renovation materials. They may be able to get a discount on materials that will help you stay on budget.
As an experienced real estate professional, I can offer advice about the types of home renovations that will add value to your home if you are getting ready to sell your home. Contact me today for your personal consultation.