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Home Renovation Amid Rising Interest Rates

Home Renovation Amid Rising Interest Rates

If you’re a homeowner in the Houston area, rising interest rates may make it difficult to plan your next move. High interest rates have made selling more challenging and buying a new home too costly. Although high interest rates have increased renovation expenses, upgrading your home can be financially beneficial.

Renovating your home now can increase its resale value for a potential payoff in the future. With Houston’s rising interest rates and competitive real estate market, renovating your home is a smart investment that allows you to enjoy a modern, updated living space while potentially making a profit when you decide to sell.

Strategies for Managing the Cost of Home Renovations

Renovating your home can be exciting, but the cost can quickly add up. To avoid financial headaches, implement effective cost-management strategies for your home renovation project, such as:

Plan early: Decide on desired layouts and finishes and price materials. Outline your project’s timeline and financing needs. Research the cost versus benefits of your planned renovation to understand how much you can spend without cutting into the value the project adds to your home. Plan a budget within specific percentages of your home’s value. For example, 16% for a kitchen remodel and 7% for a bathroom.

Finalize your selections: Pre-order materials and appliances to avoid issues with supply chain disruptions. Pre-ordering creates a streamlined construction process, preventing periods of inactivity due to waiting on supplies. It also helps you establish realistic costs before starting renovations.

Know your limits: Make room in your budget for surprises and take a flexible, patient approach to renovations. Work with a professional construction company like Big State Construction to guide you through the project and minimize costs.

Tips for Cutting Renovation Costs

Your contractor is your best resource for finding deals and discounts on building materials like lumber, drywall, countertops, and tile. However, you can often find deals on items like lights, faucets, and cabinet hardware, that your contractor can install. To cut down on renovation costs, implement the following tips:

Shop around: Take the time to shop around for items. Specialty stores like Ferguson Bath, Kitchen & Lighting Gallery, and Restoration Hardware may have a good selection of high-end options that you can find on sale.

Look at local home improvement store deals: Home improvement stores, such as Home Depot and Lowe’s, carry several light, faucet, and cabinet hardware options. These stores often offer deals or discounts on clearance items, which can help you save money on your renovation.

Compare items online: Online retailers such as Amazon and Wayfair offer an array of choices for lights, faucets, and cabinet hardware. These are typically available at a discounted price for what you might find in-store, so it is worthwhile to compare online prices to find the best deal.

Budgeting and Planning a Home Renovation Project

For a cost-effective remodel, budgeting and planning are essential. A budget sets the spending baseline and guides decisions about materials and builders. Renovation costs vary but expect to spend between $10 and $60 per square foot.

Unexpected obstacles and delays can increase spending; overestimating your costs by 20-30% can help keep your project within budget. Working with professional builders like Big State Construction can help create a realistic budget for your project based on industry experience and supply chain knowledge.

Benefits of Home Renovations

Home renovations can provide numerous benefits for homeowners. Moving can be expensive, time-consuming, and emotionally draining. Renovating can help you avoid the emotional and financial stress of moving.

A renovation allows you to customize and improve your existing home to fit your needs and lifestyle better. Customizing a house that has already been loved and lived in can be a more cost-effective and practical solution than starting over in a new home.

A well-planned renovation can increase your home’s value and provide a return on investment if you sell in the future. It also offers a sense of satisfaction and pride in the finished product, allowing you to create a space that truly feels like home.

Big State Construction Values Our Customers

At Big State Construction, we understand that home renovation projects can be overwhelming, which is why we value our customers and strive to provide a stress-free experience. Our team of experts will work closely with you to understand your vision and bring it to life, all while ensuring your project stays on track and within your budget.

Contact us to learn more about our process and how we can make renovating your home an excellent investment. Let’s transform your house into the home of your dreams.

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