How much should you spend on your renovation?
Written by Administrator
Wednesday, 06 May 2009 18:28
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At the early stages of your renovation planning, you will not know how much your renovations will cost, but you need to have some idea of what you can, and want to, spend. It is also wise to ensure that your renovations will offer reasonable payback on the value of your house.

Often, renovations are financed through a combination of savings, short-term loans and mortgages, taking advantage of the existing equity in the home. Talk with several financial institutions to figure out your options. Consider the following:

  • the amount of your savings

  • the costs associated with the renovation, such as new furniture, drapes and blinds, fixtures and appliances

  • the amount you can, or are willing to, borrow

  • the total amount you are prepared to spend

Consult with a Professional Renovator

Going from the "ideas stage" to the final plans that are the basis for getting bids from professional renovators often happens in several steps, as you explore the feasibility of getting what you want within your budget. You may wish to contact one or more professional renovators in the initial stages of your renovation planning to get a better idea of cost and how best to proceed with your project.

Professional renovators can provide "ballpark" estimates for rough ideas, advise you on the need for design or architectural services, and tell you how you can best prepare the information required to get accurate bids. They can also advise you on the kinds of work that homeowners typically are able to do themselves to stretch their budget, and they can help you to develop a long-term plan if you wish to renovate your home in stages.

The Real Estate Appraiser

If you are concerned about payback on your investment and you don't want to exceed the value of similar homes in your neighbourhood, talk to a professional real estate appraiser before you start renovating. The appraiser can establish the current value of your home and of comparable homes in the area, and determine how the renovation you are planning will affect the value of your home. The appraiser will also be able to advise you on the types of renovations that offer the greatest payback value.

The Home Inspector

A pre-renovation inspection by an independent home inspector can help you to evaluate the overall condition of your home, and to set priorities for current and future renovation projects. The inspector can identify repair work and equipment replacement that may be needed in the short or long term. A copy of the inspector's report should be provided to the professional renovators asked to bid on your project. Check the Yellow Pages under "Building Inspection Service" and choose an inspector who is a member of the Association of Greater Ottawa Building Inspectors.
Last Updated ( Wednesday, 06 May 2009 18:29 )
 
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