Your house is perhaps the largest investment you’ll ever have, and the initial purchase is just the start. Financial experts say you have to plan a budget for house remodeling. Many homeowners are choosing to remain in their homes and remodel, rather than selling and buying a better house.
Home renovations in Scottsdale can be affordable or expensive depending on what you want to achieve. Advance with care and follow our 13 tips to plan and minimize your expenses on home additions.
Collect Legal Documents
If you want to make a home addition, secure a few legal documents before you make a plan. First, find the precise plot plan of your property displaying its boundary lines and the closeness of the current and proposed buildings to those boundaries. You want to know this detail because you’ll need to make sure that the new addition is built inside the jurisdictional setbacks prescribed by local zoning laws. You don’t want to see your new home addition being destroyed just because it’s built too near to the property lines. Such plot plans can be found in your local Registry of Deeds.
Identify The Cost-Benefit Ratio
If you’re planning a kitchen remodel in Arcadia or cabinets remodel in Phoenix, always ask yourself whether the project’s costs are worth it. It may not make sense if you’re adding an additional room when you’re planning to sell your house in the short-term. Therefore, focus on creating large home improvements if your goal is to sell your home with value. If you decide to stay longer, add an extra space to make your life more comfortable. Only you can identify what home addition projects are good for your budget.
Set The Scope Of Your Project
When defining the scope of your project, envision it. Think of who will be the main users of the space, as well, as their special needs. Do you want to optimize the view of nice surroundings? What amenities do you want to add?
It’s better to make a list of particular improvements than simply thinking of remodeling your home. For example, if you plan to remodel your kitchen, think of specific kitchen improvements, like replacing the cabinets, painting the walls, or adding a new countertop. Know exactly what you need and list them down in order of their relative significance. Also, make a special list of items that you might want to have. You may end with a room in your budget and the best way to maximize them is to spend on a few finer things, like a chandelier for your new dining room.
Determine What Type Of Addition To Make
One of the most significant factor when planning a home addition is to know what type of addition to make. Whether you plan to build out or up, both have the advantage of adding extra living space and value to your house. Also, both have limitations and costs.
Building out, for instance, includes the expense of making a new foundation under the place being constructed. Be aware that you may lose some of your outdoor space while gaining an extra space for your home.
While building up doesn’t cost you for any new foundation, you may need to strengthen the present foundation to handle the extra weight. Zoning laws will still apply and may ask you to limit the height of your house. Also, you need to build an additional staircase to lead you to your new living space.
Assess Your Utilities
Before you begin designing your home addition project, it’s ideal that you consult with an electrician and HVAC contractor to identify the capacity of your current systems. The last thing you need is to build a new addition that your current electrical and HVAC systems can’t handle. Make sure that your current utilities can handle the extra square footage.
Your contractor or plumber will compute the capacity of your heating and cooling system based on several factors, such as placement of windows and cubic living space. If your current HVAC system can’t handle the extra load, you have the option to update it or install a separate HVAC unit.
To check your current electrical system, your electrical service panel will be inspected. The electrical service panel is the gray box that holds all the circuit breakers inside. If your electric panel can’t handle an additional power, an upgrade might be needed which can cost around $1,000. If the panel doesn’t have sufficient open slots for the new wiring, you might need to replace it with a bigger one or install another panel.
Establish Your Budget
Now that you have your to-do-list, make a budget. To calculate the estimated cost, don’t forget to include labor costs, material costs, equipment, and permits.
If the estimated cost is bigger than the project scope, cut the project down by focusing on more significant jobs on your list. As determined by your budget, you may be able to finish a large project all at once or complete the project one step at a time for a longer duration.
When setting a budget, make it realistic. The last thing you need is to get buried with debts when doing your project. Stay within your budget and you’ll be free from anxiety when the project is complete.
Before you start working on the project, make sure that you have the money to finance it. You’ll be stress-free if you know where to get money as you break ground on the project. Of course, be prepared to bring an ample equity to the table.
Here are three common financing options:
Home equity can be secured through a line of credit or loan. A home equity line of credit takes equity as a loan collateral and repayment term can go as long as ten years. A home equity loan is a second mortgage with moderately higher interest rates, and you can repay it up to 15 to 30 years.
Another way to fund your home addition project is through cash-out refinancing. Take out a higher amount of loan than your initial mortgage and use the remainder to fund your project. What happens is your old mortgage will be replaced with the new loan.
For smaller projects, apply for a credit card or a personal loan. However, don’t be surprised with higher interest rate payments. You can easily get a personal loan or credit card if you have an outstanding credit score and a good credit history.
Talk With Your Neighbors
If your neighbors are living really close to you, make sure that you speak with them when planning a home addition. Rather than receiving complaints while doing the project, deal with your close neighbors in the early stage of planning. Ask them if they have any issues with your home addition and make changes when necessary.
Be specific about the details, like your project’s time frame and scope. It’s also a good idea to give the contact information of your contractor. Show them the plans and tell them what they can expect, both during and after the project.
It’s also smart to do this before you gather the essential building permits. This way, you show that you listen to their issues and care about their input. Of course, you can also be honest when rejecting their input.
Complement Your Design With The Current Floor Plan
When planning the design of your home addition, look at your current floor plan and make sure that it complements. You can ask an architect to help you in developing the plan. Don’t just think about the way you’ll reside in your addition, also think how it impacts the architecture look of your house from the outside.
Match exterior elements to build a uniform look to the exterior of your house. Look for matching windows, shingles, and siding. Since there’s no aluminum siding available anymore, you may need to re-side your whole house in vinyl siding.
Detail the material descriptions and scope of the project when making the final plan. If you still have the energy and time, create a material list with alternative choices. You might find that your first choices are too expensive, so look for cheaper alternatives.
Consider Buying Materials At A Discount
The best way to save money for your home addition is to look for sales and use discounts as possible. You can try shopping at a bulk warehouse store or at a home improvement store. Select recycled or reclaimed materials to maximize your budget. If you work with a contractor, ask for a price adjustment if you buy all the materials yourself. Pay cash for all materials bought and ask for a discount to save even more.
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Lots of us can design a home but the truth is, no one can beat an architect when it comes to designing a beautiful home. A professional architect knows how to design an awesome living space that a normal person can’t imagine. Often times, an architect also knows some good builders that you can use.
Next, you need a construction manager to help you finalize the plans and select the right contractor for the job. Other professionals, like a plumber, HVAC technician, and an electrician may be needed when evaluating the current utilities of your home, like electric panel and HVAC systems.
Your yard might be in its worse condition when the project is complete. In this case, you might need a landscaper to bring your yard back to its glory. A group of cleaners can also help in getting all the debris out of your home and make it look new again.
Don’t Attempt To Do It Yourself
Even if you’re a do-it-yourself (DIY) type of person, try to avoid building an addition yourself. You should follow this tip if a bank finances your project because often a bank requires the use of a licensed contractor. Also, home additions are usually complex and you need lots of coordination.
If you do it alone, you have limited resources to contact any subcontractor to get the work done in a timely manner. General contractors have good relationships with various subcontractors and the capacity to finish the job as quickly as possible, which brings us to the next tip.
Look For A Skilled Design-Build Company
Making a home addition will need multiple skills from many professionals. If you like to make the project yourself, you could hire an architect to make the design and then hire several contractors to do the different stages of the architect’s plan.
Another way is to hire a design-build company to manage all stages of your project. Many homeowners prefer this method because it eliminates the need to hire and supervise several contractors independently to do your entire project. It’s also better to manage expenses and accountability.
Looking for a design-build company is easy. Simply check the phone book and you’ll see various home improvement contractors in the Phoenix and Scottsdale areas. However, not everyone is experienced, credible, and reliable.
Before you choose a contractor, ask pictures of their work and verify their licenses. You can also contact their previous customers and check for any customer testimonials online. It’s very important that you conduct a thorough research about the contractor to make sure that they can deliver the project on time and stay within your budget.
In Phoenix, Pankow Construction is your best option for home addition from kitchens to bathrooms. We offer more than 17 years of vast home remodeling experience. Call 602-595-0799 for a free consultation or contact us to leave a message.