Whether you’re hoping to flip homes for a profit or make your home a more comfortable place, you’ll want to invest in home renovations. Replacing old appliances and remodeling a few rooms can completely change your home.
It can also dramatically increase your home’s value! But what is the cost of renovating a home? Is it an investment with a solid return?
Let’s discuss why you might want to invest in home renovations, as well as how much you can expect to spend on those upgrades.
Why Invest in Home Renovations?
Renovating your home could be one of the best decisions you make this year. After all, many of us continue to work remotely from home. Making your home more comfortable is a great way to reduce stress and relax.
But comfort is only one aspect to consider. Renovating your home can:
- Increase Home Value
- Improve Home Efficiency
- Enjoy Comfortable Living
Let’s explore these benefits in greater detail and find out why a full home renovation might be the ideal investment.
Increase Home Value
Renovating a home is a tried-and-true way to increase its overall value. After all, a home that’s outfitted with brand-new flooring, appliances, and features is bound to attract more buyers than an older home with older amenities.
Whether you’re planning on selling your home within the year or two decades from now, renovating can help you keep current with home standards, reducing the amount of work you’ll need to do in the future.
Improve Home Efficiency
Older, outdated homes still offer shelter from outdoor elements. But they can lack many of the modern conveniences that most of us rely on. A home with an antique washing machine and a 40-year-old dishwasher can be a pain.
Not only do these appliances lack many helpful features that are common among contemporary devices, but they might also have a habit of breaking. They may also be relatively inefficient, cause your utility bills to skyrocket.
Enjoy Comfortable Living
Replacing old appliances is the first step toward a more comfortable home life. From that point, you might feel inspired to remodel your home’s bathroom, or bedrooms, or dining area!
Adding a new rug or slapping on a new coat of paint can change the vibe of a room. You can create stylish, aesthetically pleasing areas that make your home life far more enjoyable.
After all, when you’re bending over backward to get your old dresser drawer unstuck or waiting for your sink to drain, you can spend your time doing things you actually enjoy.
What Does Flipping a Home Entail?
Flipping a home isn’t always as simple as replacing some old shag carpeting and painting a few walls. Generally, flipping a home can entail anything from installing new electrical systems to building a pool.
However, you can break down this process into three neat steps:
- Repairing Major Damage
- Replacing Old Appliances
- Remodeling Living Spaces
The first thing you’ll want to do when flipping a home is to repair any major damage around the property. Backed-up plumbing, faulty power outlets, and rotten structural beams should all be a top priority.
After that, you can begin focusing on replacing old appliances and remodeling living spaces. Homebuyers are more likely to purchase homes with updated features, so be sure to replace old ovens and AC units.
If you’re unsure how to remodel your home’s living spaces, you can utilize an interior design guide for inspiration and advice. But, of course, designers may not be able to help you lower your renovation costs.
What Is the Cost of Renovating a Home?
The cost to renovate a home varies depending on the size of the home, the types of damage in the home, and the owner’s renovation plans. Still, most renovations cost anywhere between $15,000 and $200,000.
As such, the cost to renovate your home could be equal to the price you paid for it! That’s why it’s crucial for house flippers and homeowners to budget for their renovation.
How to Create a Home Renovation Budget
Creating a home renovation budget is a relatively straightforward process. To ensure you don’t overspend, you’ll need to:
- Choose a Project
- Make a Plan
- Calculate Supplies and Labor
- Consider Applying for a Loan
Naturally, this is a simplified series of steps. But they do represent the major parts of preparing for a home renovation. Consequently, you can help yourself start on the right foot by following them.
As you might expect, the first thing you’ll need to do to create a budget is to choose a renovation project. After all, you may only want to renovate a single room, not your whole home.
Choose a Project
If you’ve recently purchased a property to flip, you’ll need to assess its electrical systems, plumbing, and flooring. Of course, you’ll also need to check out the roofing, insulation, and foundation as well.
Hiring a home inspector might be the best way to ensure that all your property’s major components systems are in good working order. If they are, you can move directly onto planning, refurbishing, and remodeling.
However, if your home needs any intensive repair, you’ll want to complete them before doing anything else. Remember, no amount of interior design can cover up the fact that a home’s toilets don’t flush!
Breaking down your renovation into several projects is a smart way to manage badly damaged homes. You can tackle electrical issues first, or if there aren’t any major problems, tackle the home room by room.
It’s also crucial to call a pest control technician to check for signs of rats and termites. Both of these common pests can cause major problems for you if not eradicated right away.
Make a Plan
The planning phase of your renovation can be a lot of fun. That’s because it involves quite a lot of daydreaming.
Once your home’s basic systems are in excellent repair, you can start deciding how you’d like to renovate your home. For example, will you knock down that dining room wall to create a more spacious living area?
Or perhaps you’ll remove all those outdated kitchen cabinets and replace the countertops. Anything you think needs replacing is a potential project when you’re renovating a home.
However, each project should have its own supplies and labor sheet. Otherwise, you can quickly get overwhelmed by the number of things you need to purchase and do. So get ready to break out your calculator.
Calculate Supplies and Labor
Let’s say that you’re going to start your renovation with the guest bathroom. You might want to add a fresh coat of paint, replace the floor tiles, and upgrade the toilet and sink. Maybe you’d also like to add a little storage.
Each of these ideas has two specific costs associated with them: Supply and labor. For example, a fresh coat of paint for the walls might cost about $30 per gallon. And a paintbrush and tray might cost around $10.
But you might also need painter’s tape for your edges. And you may need another container of paint for your ceiling molding or baseboards. And perhaps you can’t reach the ceiling, so you need a step ladder.
These costs can quickly add up, and they could outweigh the costs of simply hiring someone to paint your bathroom for you. Calculating the supplies cost for each project is a great way to reduce your overall spendings.
Comparing those costs to the labor cost you’d incur by hiring outside help is an even better way to stick to your renovation budget.
Consider Applying for a Loan
Once you have a supplies and labor expense sheet for each of your projects, you can add the final estimated total for each one to find your total estimated cost. Now, this number can be a little intimidating.
However, you don’t necessarily have to shoulder this cost on your own. A home renovation loan could be the ideal funding boost you need to flip your property and earn a profit.
If you’re short on funds for repairs and remodels, consider the Plenti Renovation Loan. They can help you get your home renovated more quickly and easily, ensuring a faster route to comfort and profit.
Renovating Your Home Has Never Been Easier
If your home is several decades old, or it’s just not looking its best, you may want to consider renovating it. Putting in new carpets, knocking down walls, and installing new kitchen cabinetry, could end up being a great investment.
After all, newly renovated homes tend to sell faster and for higher prices. Though the cost of renovating a home can be steep, a renovation loan could help you afford what you need.
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