Tag Archives: remodel

Questions to Ask Yourself Before Remodeling Your Home

24 Aug

My husband and I are currently in contract for our first home. As exciting as it is, it is also incredibly nerve-wrecking to watch money being pulled out of your bank account,  schedule and attend meetings and fret over renovations that need to be made. We are hoping that this is a property we can fix-up and enjoy for at least the next few years.  We were also okay with moving into places that may need some work, which is the type of co-op we ended up choosing. I have a dream that this will end up as a money-maker, but I am realistic and also would just love to break even at the end of it all.

When purchasing a home that needs repairs, you definitely need to consider how much you want to spend before you put an offer down on the property. Here are some important questions to keep in mind to determine whether or not you want to even take on a remodel:

1. Is it worth it? 

  • Do I plan on staying in the property long-term or do I plan on flipping the property?
  • Is the house listed at a lower price than comps that have already been updated?
  • Will renovations have any impact on the resale value of the home? Or will I out-price myself?
  • How many things need to be renovated and at what cost? Are they expensive renovations or not?

2. Can I afford it?

  • Do I have the money on-hand after purchasing the home? Or do I plan on taking out an additional loan?
  • Do I need to put any of my purchases on credit?
  • Are these renovations going to be upscale, middle of the line or a homeowner’s special?
  • Are any of these renovations or updates that I can do myself or will I require contractors, permits, etc?

3. Can I Live With It?

  • Will I be able to live in my home while renovations take place? Or do I need to stay elsewhere?
  • Am I prepared to go without certain things on certain days?

As for us, we will be paying for our renovations out of our own pockets once all is said and done—we are not taking out any additional loans or putting anything on credit. For me, this is the only way to go.

How do you feel about the costs related to renovating your home? Are there any other considerations future homeowners should think about?