Do you want to update your kitchen to a sleek, modern look with all new appliances? Maybe you’re thinking of converting your basement to a comfortable game room where you and your family can engage in friendly competition on the weekends. Or perhaps you want to add 75 square feet to your living room and at the same time, upgrade your home to a smart home.
Whatever your plans are, it’s clear that renovating your home can be a great way to add space, upgrade your home or simply give your interior a new look. However, if you don’t plan properly upfront, a renovation can turn into a costly and time-consuming headache. To prevent these negative outcomes from occurring, keep the following six pointers in mind:
- Research what adjustments can increase the value of your home. You might want to add a sunroom at the back of your home, but if you live in a neighborhood that consists mostly of no-frills single-family properties, your investment isn’t likely to pay off when the time comes to sell your home. The reason for this is that home buyers expect certain types of properties in certain neighborhoods. If your home has features that don’t fit the bill but whose costs you want to recuperate in a sale, you might price yourself out of the market — or risk losing substantially when you sell. To avoid this, consult with a local real estate agent about the types of improvements that are most likely to increase the value of your property.
- Set a budget. Calculate how much money you’ll need to invest in the renovation project. There are various online resources that can help with this. For example, House Beautiful advises that on average, a kitchen renovation costs approximately $22,145. The site also provides more information about the costs involved with renovating a kitchen, bathroom, living room, deck or basement. Note that when setting a budget, it’s wise to reserve 10 to 15 percent for unforeseen costs, since you may run into unexpected surprises once work commences.
- Determine how to finance the renovation. Renovations are expensive, so you have to think carefully about financing it. Nerdwallet advises that depending on your specific situation, you could consider a cash-out refinance, a mortgage refinance, a home equity line of credit or a home equity loan. Discuss your options for mortgage financing in Los Angeles with Peak Finance.
- Be realistic about what the renovation entails. Realtor.com advises discussing the details of the project with an architect or contractor to see what’s involved in making your dream a reality. For example, if you want to add a bathroom in a part of the home where there’s currently no plumbing, what’s involved in extending the pipes? Or if you want to convert your home to a smart home, how much electrical work is involved — and will you run into problems with old, outdated wiring? Find out what could go wrong or cause delays.
- Get some quotes. Once you’ve decided on the renovation, research some trustworthy contractors in your area and request a quote from each. This usually involves them coming to your home, listening to your plans and providing you with an assessment of the work and the cost involved.
- Determine whether or not you’ll have to make alternative living arrangements. If your renovation is extensive, you might have to stay elsewhere for a short period of time. It’s critical to know this upfront, as it will add to your costs and disrupt your and your family’s life even more.
Renovating your home might require a lot of preparation and a considerable amount of hassle. However, when your plan is realistic and you choose a reputable contractor, you stand a good chance of the work being completed on time and within budget. And that means you and your family will be able to enjoy your new, improved home for years to come — not to mention recover a good portion of its value if and when you decide to sell your house in the future.
Mortgage Financing in Los Angeles
If you are in the process of figuring out how to finance your new home renovation, get in touch with Peak Finance today to discuss your options for mortgage financing in Los Angeles. At Peak Finance, we go out of our way to think out of the box and find solutions where others would not. Contact us today at (877) 874-7325.