Star Tribune Sizzling Sunday Special (Summer 2021)

Home remodeling can raise the value of your property, provide extra space, and give an older house a more modern look. However, sticking to a budget can be difficult, and if you don’t keep track of your expenses, you may end up draining your bank account. Adhering to a budget is one of the most difficult things to do, and most people fail at it. The following tips will help you stick to that budget you’ve set.

Plan, Plan, Plan

Making a plan and adhering to it is one of the things you’ll need to consider to cut costs during your home remodel. Changing the plan frequently results in delays, additional costs for materials, and additional labor time. Deviating from your plan will almost always have a substantial impact on your budget. In 2016, 46% of homeowners who had set a budget went over it.

So, once you’ve started the project, it’s important to stick to the original plan. Create a checklist of what you need and what you don’t, depending on your budget. Determine what you can eliminate or remove from the checklist and items that must remain on the checklist at any cost. Make an honest assessment of the amount you can spare for each level of the project.

Research

If you do your due diligence and research, this will help you estimate how much you should anticipate spending on the project as a whole. It will also offer you the flexibility to select where to economize and where to splurge; knowing this upfront will make it simpler to set a budget and keep to it. It’s critical to have a realistic home remodeling budget in place if you want to stay within the limits of whatever budget you will come up with.

You’ll need to look at the prices of supplies and products as well as the labor costs. This will enable you to estimate the cost of your renovation, allowing you to make an informed choice about whether or not this is something you can afford at this time. Also, if you do your research well, you might even consider home remodeling options like landscaping that can save you money in the long run. Spending as little as 5% of your home’s worth on landscaping might result in an ROI of up to 150%. So, you don’t only get to remodel your home within the limits of your budget, but you can also enjoy a return on your investment in the future.

Get Quotes From Different Contractors

To get a solid cost for your home remodeling, you’ll need a set of drawings and building quotes. Make an effort to obtain at least three different quotes from separate companies to compare. Because quotations can differ greatly, read them carefully, understand what is included, and don’t be afraid to ask questions. Return to your builder if they give you a quote that is higher than you expected. Check to see if and where you can save money, such as by doing the work in stages or changing the design or specification. When you’re on a limited budget, it’s in your best interest to find dependable contractors who are affordable and good at what they do. Check each contractor’s references, ask to see their work, and do some online research on each company.

Go DIY On Some Remodeling Projects

Doing things yourself is unquestionably the most cost-effective strategy to save money on home renovations. Of course, you can do simple things yourself, such as painting, but depending on the service, it’s best to just admit you need help and hire a professional – especially for electrical and plumbing work.

Add a Buffer

If home remodeling can teach you anything, it’s that remodeling doesn’t always go as planned! Once you’ve calculated your budget, it’s a good idea to set aside 25% of the overall cost as a ‘buffer’ in case of any unforeseen events or additions. Even if things go awry, you’ll be able to keep inside your budget if you do this. You can even use this money to make your home not only trendy but more energy efficient. Over the past 20 years, energy use in the U.S. doubled, and going eco-friendly is the way to go. So, you may even consider affordable energy-efficiency appliances or fixtures that can save you money.

It’s an important aspect of your remodeling planning and management to make sure you keep on track and don’t end up with a negative balance at the end. A budget is a tool that can help you keep track of your project and meet your financial goals. So, remodel your home based on these solid money-saving tips.

Although saving money while trying to purchase a home may seem difficult, it is achievable. Here are some money-saving tips that will help you buy your dream house without breaking your bank.

Use a Skilled Local Real Estate Agent

Their experience in the home buying process and real estate is crucial for receiving the best deal for a house. Using a good realtor will also save you a lot of money, time, and stress and the process is likely to go a lot smoother. The real estate agent’s job is to negotiate a fair price, walk through the legal aspects of closing and save you money. Research shows that 78% of new homeowners thought their realtor was a source of valuable advice. The realtor generally receives a 3% commission but there are ways to cut down on your expenditure here. You can avoid standard commission by using services that refund the buyer a percentage of the purchase price at closing. Since you are expected to have a realtor, you can receive recommendations for a good realtor from friends or family members.

Find Loan Quotes from Various Lenders

The interest rate for mortgage businesses differs so you are advised to get quotations from four or five of them. With approximately 35.5 million Americans moving annually, it is quite simple to find referrals to different lending companies others have used. There are many other fees that you are charged for the processing of a mortgage, like loan application fee and loan origination fee. So, comparing quotations will allow you to choose the cheapest and the option you are most comfortable with.

Keep 20% Saved for the Down Payment

Having money saved up for the down payment is a form of assurance to the lending company. It assures them that they will be able to recover the balance due on the loan in the case that you are unable to finish paying. So, if you do not have the 20% down payment you will be left with no other option but to pay for mortgage insurance. This will probably cost you 0.5 – 1% of the total loan amount annually. If the houses you’re looking at are making it hard for you to raise the 20%, you may want to consider looking for lower-priced homes. The mortgage insurance allows the lender to be reimbursed in the case that you fail to follow through with your payments.

Raise Your Credit Score

Lender fees and interest rates are closely connected to your credit rating. This is because it shows your creditworthiness based on your credit history, which shows the number of open accounts, repayment history, and other factors. So, if you have a high credit score, your loan will be more affordable. To improve your credit score fast, you should avoid applying for new loans which make up 10% of your credit score and try to keep your credit card balances below 15% of your credit limit.

Look for a Fixer-Upper

Although it is more desirable to look for a house that doesn’t need any work, it is likely to be more expensive. This is because there is no additional work to be done. Finding yourself a fixer-upper will save you a lot of money, but make sure you take on a renovation project you can handle well. You can also renovate slowly, which allows you to control your costs. One project you can do yourself is painting walls, which is quite affordable as one gallon of paint can coat around 25 and 44 square yards. This allows you to make your home more personalized while saving you lots of money.

Whether you’re working on a limited or unlimited budget, being cautious when buying a home is a good idea to save money. These money saving tips are aimed to help you do so without much stress.