(Newswire.net — April 9, 2019) — For homeowners who plan on staying in their homes for the foreseeable future, now is a great time to invest in renovations. The economy is thriving, home values are increasing, and there’s a prime opportunity to capitalize on the state of the industry. But if you’re going to embark on a renovation project, you must also be ready to face some of the common challenges that inevitably emerge in the process.
4 Challenges You May Face
Home renovation projects look nice and tidy on paper, but they have a way of devolving into something else when great care isn’t taken to keep things on track. Before diving too deep into the process, take the time to account for potential challenges.
1. Identifying and Sticking to a Budget
The first major challenge is to identify a budget for your renovation project. If you don’t have any contracting experience in the past, it’s hard to know exactly what a project will cost. Contractors can supply you with bids, which will help you figure out a ballpark range, but this isn’t always enough. Costs can easily become inflated and it’s best to create a cushion of 10-15 percent in your budget. Should anything go wrong, this will help you stay on track.
After identifying a budget and starting the project, you then have to work on staying within the constraints of the number you’ve identified. This can be an even greater challenge. A good contractor will respect your budget, but don’t turn a blind eye. The more engaged you are, the less likely that things will go awry.
2. Financing the Renovation
How do you plan on paying for the renovation? If you’re in a situation where you can write a check and pay in cash, this is ideal. But if you’re like most people, a major renovation will require some sort of financing.
“A home equity loan is one of the easiest and more flexible options for financing a home improvement project. It enables you to take out a loan against the equity you have in your house,” Houston-based Green Residential notes. “If you’ve built substantial equity over the years, this could give you the opportunity to borrow a large amount of money at a lower interest rate than you’d get with a personal loan or credit card.”
You can also look into personal loans, cash-out mortgage refinancing, and home improvement loans. If you’re in a specific neighborhood and you face extenuating circumstances, you may even qualify for a HIP loan, which is subsidized by local governments on an as-needed basis.
3. Hiring the Right Contractor
The contractor you select to handle your remodel will ultimately determine how smooth and successful the project is. Create a list of five to seven local contractors – then narrow your search based on referrals, online ratings, and other factors that you deem important.
“Choose a contractor who specializes in the type of remodel you need; someone who specializes in remodeling kitchens might not be ideal for your bathroom renovation. A home improvement contractor with a creative eye can also be helpful for certain projects,” ConsumerAffairs points out. “For instance, if you want to lay a tile entryway with a detailed mosaic or paint a room with a faux finish, you’ll need a contractor who does that type of work well.”
Don’t rush into selecting a contractor because they’re the cheapest or most convenient option. It’s always worth waiting for the better contractor.
4. Limiting the Scope of Work
It’s easy for a home improvement project to balloon over time and end up much bigger than it was intended to be on the front end. While it’s okay to add a couple of minor details here and there, you want to avoid significant scope creep. Always think about the unintended consequences of a particular action and don’t do anything that creates unnecessary work.
Formulating a Proactive Renovation Plan
You can’t account for everything that will happen in a home renovation project. There are hundreds of independent variables involved and it’s impossible to develop a comprehensive plan. However, you can establish some proactive contingencies for major issues that commonly arise with renovations. In doing so, you’ll be better prepared to handle whatever comes your way.