The Homeowner’s Guide to Home Renovations

Since buying your first house, you’ve been dreaming of everything you’ll change to transform it into your dream home. There’s just one problem: You have a limited budget.

From materials to labor, home renovations can cost a pretty penny. However, they can really pay off in the long run. If you plan to list your home for sale, renovations you make can pay off in spades when the time comes for your appraisal.

If your space is in need of a spruce up, a smaller budget shouldn’t stop you from loving your home. Here are some tips on how you can create the home of your dreams.

Tip one: Know which projects make dollars and cents

Spending big bucks on an in-ground swimming pool? ABC News points out that it’s probably not worth it. But there are some home improvements that are practically guaranteed to pay off. These include mid-range upgrades to kitchens and baths and curb appeal, as well as projects that improve a home’s energy efficiency. Also think about how safe your home office is. Survey the office space and evaluate what’s in need of repair or replacement, including the walking surface, fire hazards, electrical safety, and air quality. With so many people working from home these days, ensuring the safety of your at-home work environment can be an important selling point.

Before undertaking any home improvement project, ask yourself if it will help or hurt your home’s value when you sell. Knowing you’ll earn your money back makes it easier for budget-conscious homeowners to invest in remodeling.

Tip two: Be smart about paying for home improvements

Cash is the best way to pay for home improvements. However, it’s not always possible or practical. If you need financing for home improvements, be smart about how you get it. Credit cards have high interest rates that make major expenses hard to pay off.

There are better options for financing renovations. With significantly lower interest rates than credit cards, property equity loans are much cheaper. Alternatively, homeowners can wrap renovation costs into a refinance and benefit from historically low mortgage rates. Keep in mind, however, that refinancing means you’ll have an entirely new loan with a new lender. That means you’ll need to shop around to compare rates and reputations to find the right mortgage lender.

Tip three: Focus on cost-efficient, high-impact renovations

Now that you know where to focus your spending — and how to get funding — it’s time to craft your home improvement to-do list. Here are five renovations that not only make a splash on a set budget, they’re also easy enough you can do them yourself!

Painting

Painting interior walls is the perfect place to get your feet wet with DIY home improvement. Lowe’s walks homeowners through painting a room step by step.

Redoing cabinets

The wrong cabinets can make a great kitchen look dated. Homeowners have a few options for updating existing cabinets, including painting, refinishing, and refacing. Even simply replacing the hardware can give old cabinets a new look!

Installing a backsplash

Tiling a backsplash is a bit more advanced but still a beginner-friendly kitchen project. Use subway tile for a clean look that’s easy to install (and surprisingly affordable!).

Replacing carpet

Does your home have old, stained, or smelly carpet? No problem! After removing carpet yourself, try your hand at DIY flooring with easy-install options like click-together laminate and vinyl plank. If you’re installing carpet, however, it’s worth spending extra on professional installation.

Updating kitchen appliances

The hardest part of installing kitchen appliances is getting the sizing right. While you should take companies up on free installation when it’s offered, homeowners can even replace a gas stove themselves as long as they’re careful and check for leaks.

It’s not only possible to improve your home on a budget — it’s essential. Renovations are an important part of maintaining your home’s value. By finding smart ways to pay for cost-effective and impactful home improvements like these, you can protect your wallet today and preserve your investment for the future.

Article compliments of Clara Beaufort