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4 Steps to Budget For a Remodel in the New Year

Posted by Audrey Lichten

Dec 15, 2015

 

 

The year is coming to a close and with the holidays fast approaching, money is probably a little tight right now. But you’ve been thinking about how your home needs a little work to make sure it’s keeping you safe and warm (and to get your curb appeal back!). So how do you go about planning a remodel when it always seems to be something for the future? Make next year the year with these four steps to budget for a remodel:

  1. Estimate the cost - It’s important to know what you’re shooting for. Decide what exactly needs fixing up and do some online research to figure out a ballpark cost for what you want done.
  2. Establish a spending limit - Once you’ve decided what you want done, you’ll have to look at the numbers. If you’re working with cash, check out your savings and your monthly budget to determine how much you’ll have to work with. If you’re borrowing money, you need to assess how much a bank will lend you and what that loan will add to your monthly expenses. Once you’ve set your spending limit, compare this number to the estimate you determined earlier. Will you be able to do it all? If there’s a significant gap between your spending limit and the estimated cost, you’ll need to rethink your priorities and decide what projects can wait and which ones should be done first.
  3. Ask for quotes - Determining who is going to do the work for you is huge! Don’t take this step lightly. But before seeking bids from contractors, decide the exact products you want. If you’re replacing your exterior siding, what type and color of siding do you want? If you know these details, you’ll be able to compare each of your quotes from the contractors accurately. When finding the right contractors, ask friends and family or other tradesmen you’ve worked with before for recommendations and check out their reviews online. You’ll want at least three contractors for quotes in order to get a well-rounded idea of the cost. Once you have the winning bid, add 15%- 20% for cushion in case there are unexpected costs along the way.
  4. Examine your priorities - With the numbers finalized, decide if it’s going to be doable within the budget you originally set. If not, you’ll need to discuss options with your contractor to cut back in certain areas. Look for low cost alternatives, consider cutting down the project or buying some of the materials yourself. Be sure to stick to your budget and really evaluate what your priorities are. Chances are, you can cut back on your dream a little to stay inside your budget and you’ll be more happy than if you’d gone for the big dream and overstepped your plan.

If your remodel for next year is for your home’s exterior siding, be sure to contact Peninsula Siding Company for a quote!

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