Most homeowners dream of making improvements to their homes. Adding custom touches, sprucing up the exterior, or even going all-out with full renovations all take time and money. But how can homeowners budget for these home improvement projects? We have some home improvement budgeting tips to share that will make the process simpler than ever before.
Investing in Home Improvements
It is important to think of any home improvement project as an investment. These improvements can add substantial value to a home. However, there’s a fine line between adding value and over-spending on improvements that don’t boost that value. It can help to prioritize home improvement projects, favoring the ones with better returns on investment. Projects such as renovating bathrooms and kitchens tend to recover improvement costs by boosting the home’s value. Energy-efficient home upgrades are also a great investment that adds value. Replacing roofing, doors, and windows, or adding insulation to the home, pay off handsomely in increased home value.
Take Advantage of Incentives
Many home improvement projects are eligible for incentives and special financing. Across the country, Property Assessed Clean Energy, or PACE, legislature has made it possible to pay for energy-efficient home improvements with low-cost financing tied to a property’s annual tax bill. Utility companies and municipal governments may also offer rebates or other forms of incentive to help homeowners pay for energy-smart improvements.
The federal government often allows deductions for certain home improvement projects; speak to a tax professional for details on available deductions and tax credits.
Get Multiple Estimates
When planning for home improvement projects, speaking to only one contractor is a serious mistake. It is best to get multiple estimates for any given project. Sometimes, the right contractor for your unique needs isn’t the cheapest; in this case, that extra money gives the homeowner peace of mind that the job will be done correctly.
There will always be unforeseen problems and surprise expenses in any home improvement project. When budgeting, set aside an additional 10% as a contingency fee for the unpleasant surprises that are sure to crop up when you least expect it.