Budget Based On Value (Part 1)
Is it your expectation that renovations should increase the value of your home in some sort of way? A popular method that has surfaced lately is basing renovations on a home’s value. I read some cool articles about it in Money Magazine and Zillow, here are some helpful links.
Now these are guidelines. They can be skewed by unusual circumstances. Start moving utilities and appliances and you can expect to see this number drive up real quick. Also, consider returns. Composite Deck systems are a great example. Budget the cost of the deck but add on the returns you will see by not doing any maintenance over the life of the deck. Consider that your deck budget is $15,000. You spend $30K on a composite but you get back $1000 annually for the maintenance you don’t have to do. You stay in the house for 15 years you made your money back and you get to enjoy another 15 years of maintenance free deck.
Some people might put a higher value on certain things too. They may want heated floors or glass railings. That’s cool, consider those things luxury items that can go beyond your budget. Remember to budget for the basics and add on the amenities. And always, always be sure your contractor is qualified to do the job. Read more about budget in our next Part 2.
If you have any questions about your deck installation call OnDeck at 866-278-2841