The average cost of home renovations in Pierce County, WA is $39,172.
That’s no small number. You need to know how to prepare for a remodel like that before making any decisions.
Knowing how to pay for renovations can be a difficult task. But you can control the cost if you know how to budget.
To get this security, read of for four tips on budgeting for home renovations.
1. Know What Home Renovations You Want to Make
This tip might seem simple, but it’s one that is easy to forget. When homeowners get excited, they forget to nail down the specifics of what they want.
Make sure you avoid this by deciding what specific renovations you want to make. During this step, you also need to figure out if you can do it as a DIY home renovation.
If not, it may be best to contact some experts. Renovations can get tricky, so don’t be hesitant to pay for professionals. It could save you time and money.
2. Decide How You’ll Pay
Some home renovations you might be able to pay for out of your regular budget. But others need a bit more cash to make ends meet.
There are a few ways to do this:
Home Equity Line of Credit (HELOC)
An HELOC is much more different than a regular loan. Instead of paying for an entire loan, a lender promises to loan you up to a certain amount.
Then, you spend the money you need from that line of credit. And if you use less than what the lender promised, you don’t have to pay it off. You only loan out what you need.
Home Equity Loan
A home equity loan is like a basic home loan. You borrow a lump sum of money to use. Even if you don’t use it all, you still have to pay it back.
Cash Out Refinance
This loan allows you to refinance the mortgage loan you already have to take more out with this loan.
3. Get a Quote
Some contractors will give you a free estimate for how much your renovations will cost. Ask plenty of contractors to get an expert’s view on how much you need to budget.
To make sure you’re getting the right amount, you may want to consider paying for a hard quote. A hard quote will give you the timeline and details you need.
4. Be Prepared for Things to Go Wrong
Unfortunately, no amount of planning can prepare for things to go wrong. Hidden problems and lazy contractors are lurking around the corner.
Don’t let this catch you off-guard. Set aside a percentage of the money you’re using to pay for these hidden fees.
If you are lucky and nothing goes wrong, then you can pocket that money. Or you could use it to pay off a loan.