If you have recently purchased your first house and it’s a fixer-upper, then you’re probably excited about putting your personal stamp on your home. Renovations allow you to design a house that fits your needs and personality, while also improving the overall value. However, watch out for the four following pitfalls that can destroy your budget, and the ultimate plans for the house.
Spending Too Much On Low-Impact Pieces
You will want to carefully budget before beginning your renovation, making sure to budget for around 15% to 20% more than the hard numbers that you give any contractors you hire. However, even within these increased budgetary strictures, you may find that it is quite easy to overspend in certain rooms.
While it can be good to spend more on high-impact finishes that will affect how much you enjoy your home, be careful of putting too much into lower-impact designs that eat up your budget. An example could be a premium-grade kitchen faucet and farmhouse sink that destroys your budget to the point that you can only afford laminate countertops. Focus on the big, most important changes first, and then over time you can slowly but surely put in all the finishing touches. Perfecting your home and your personal style will take time.
Failing to Recognize Original Architecture
While you will want to bring your own personality and design style to your renovation, you should watch out for changes that could damage the bones of the home. Certain styles don’t correlate well with certain architectural types. Check with an interior designer if you are struggling with this.
Dealing with Water and Fire Damage
If you have purchased a fixer-upper with fire or water damage, you will definitely want to get professional help from a reputable restoration contractor that you recognize and trust in your area. They will need to check for such problems as mold, mildew and weakened beams. Repairing this type of damage can provide a major blow to your budget, so be careful when shopping for fixer uppers.
Failing to Deal with Stress
Every home renovation comes with plenty of stress. From unexpected expenses to disagreements with your significant other about finishing touches, your journey is never as simple as you think it will be. Make sure to deal with your stress as it happens, to talk over disagreements with your significant other, to walk away from arguments until you are calm and to take plenty of time during the project to relax in a place other than your torn-up home.
Before you start any renovation project, be sure that you know exactly what you are doing and that you are aware of any building codes that could affect your plans. If you are inexperienced in general home maintenance or repairs, you may be better off working with a contractor for bigger projects and especially on projects that could affect the integrity of your home, such as removing walls. By staying away from these common pitfalls, you can have a finished home that reflects your personality and design style and that keeps you well within your budgetary caps.
Content Provided Courtesy of First Team Real Estate
When you click on external links, you are linking to alternate websites not operated by SchoolsFirst FCU, and SchoolsFirst FCU is not responsible for the content of the alternate websites. The fact that there is a link from SchoolsFirst FCU’s email to an alternate website does not constitute endorsement of any product, service, or organization. SchoolsFirst FCU does not represent either you or the website operator if you enter into a transaction. Privacy and security policies may differ from those practiced by SchoolsFirst FCU, and you should review the alternate website’s policies.
Extra Credit provides general information to help improve our Member’s financial lives. Every situation is different, so please contact us for guidance on your specific needs. The advice provided in Extra Credit is not intended to serve as a substitute for speaking to a loan representative, financial advisor, or BALANCE counselor who can help tailor a solution for you.
If you post a comment, we will make every effort to respond or contact you directly. We reserve the right to delete comments that contain personal information, unauthorized content, or are generally inappropriate.