Pinning your dream home is easy. The tough part is figuring out what you can afford, and how to make it happen. Follow these steps to help you create a budget for that Pinterest-worthy home remodel:
1. Ballpark Costs
First, figure out how much your dream remodel will cost you. Think through the details, and add up an estimate of costs for your project.
As a general rule, keep in mind that most major upgrades run about $100 to $200 per square foot.
2. Figure Out How Much You Have To Spend
Once you’ve picked a specific project, you’ll need to consider how much money you’ll have to spend on it. If you plan to
borrow, you’ll need to find out how much a bank will lend you and what that loan payment will add to your monthly expenses.
3. Get Quotes from Contractors
Before contacting contractors, figure out exactly what items you’ll want, such as counter materials, light fixtures, sink faucets, etc. This way, you can be sure that all prospective contractors know what you’re expecting and are pricing the correct items.
4. Set Priorities to Fit Your Budget
If your dream and your budget aren’t lining up, it’s time to start scaling down. Prioritize your plans and think realistically.
Consider buying your own materials and appliances, and keeping older items that are still in good condition. You should also gather input from your contractor about how to cut costs.
Once you’ve prioritized and achieved your budget, you are ready for your remodel! See tips on how to add value to your home.
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