Home Renovation Tips: How to Redesign Your House Within Your Budget

Posted by Staff Reporter (media@realtytoday.com) on May 03, 2016 07:30 AM EDT
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OFHEO Report Says Housing Market Slowingmore big
PARK RIDGE, ILLINOIS - DECEMBER 4: Workers move plywood sheets while remodeling a single-family home December 4, 2002 in Park Ridge, Illinois. A report by the Office of Federal Housing Enterprise Oversight (OFHEO) claims single-family home prices in Illinois, South Dakota and Michigan and four other states fell during the July-to-September period. According to industry groups, the outlook for renovation contractors will remain strong in this record year for remolding. (Photo : Tim Boyle/Getty Images)

Home improvement can be tricky. Whether you're making room for another relative, a home office, or simply giving your place a facelift, make sure you're equipped with tips to remodel without burning up all your available resources. Here are some home renovation ideas by Zillow and houselogic.com:

Estimate the costs

Start by getting an approximate value of your home. Once you've done that, follow the rule of thumb and do not spend more than the room's percentage value in relation to the value of your entire house.

For example, if the kitchen accounts for 10 to 15 percent of the property value, make sure you don't spend more than that on your home renovation

According to the book ZillowTalk: The New Rules for Real Estate, kitchen remodels generate the lowest return on investment. Your home value just increases by half than what you actually spent on the renovation.

Know the different loan options and determine which works best for you

Unless you're paying with cash for your home remodel, then you might need to consider loan options. The home equity loan is ideal for one-time projects, while HELOC works best if you have ongoing renovation expenses that oblige you to get cash every now and then.

Ask for quotations for your project from contractors

Knowing precisely what you need, the particular materials to be used, and other special considerations are key to getting the most precise if not the exact quote. This way, contractors can provide prices that are in line with your needs.

Avoid plan changes

When renovating your home, it is easy to get enticed by a new design trend and consider including it in your original plan. However, any change in the plan, regardless of how little, could change the order and affect your budget. Always try to stick to your original plan, if possible.

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