Things to Consider Before Taking on a Remodeling Project

Thinking about renovating your home? There are several things you should consider before taking on any remodeling project. Learn more in this Home Advisor video:

How long do you plan to live in your home? If only 2 or 3 more years, you may not be able to earn back the money you put into major renovations. Smaller projects like painting, floor refinishing and hardware upgrades add appeal without busting your budget.

If you’re planning on staying 5 years or longer, a kitchen or bathroom renovation gives you the best return on your investment; however, it’s still important to stay on budget. A good general rule is not to spend more than 25% of your current home value on renovations.

Once you decide on a plan, line up financing. Get estimates from multiple service pros and decide how you’ll pay – home equity loan, savings, credit card. Choose the option that’s best for you.

Before starting any project, make sure your contractors are fully insured and carry workman’s compensation; otherwise, you may be liable for any injuries sustained by their workers.

If you plan on expanding your home, be sure to have enough homeowners insurance. Keep all receipts during the remodel to make sure your personal items are covered in case anything happens.

Remember that some renovations can actually cut the cost of owning your home. New plumbing and electrical wiring can lower your insurance premiums, while updating windowpanes and adding insulation and solar panels can lower your energy bills.