The following is a post on behalf of Money Supermarket.
The current housing market has caused many people to choose to stay in their homes a little longer rather than purchasing a new home.
Houses are not selling for very much right now, so in order to avoid losing money, many homeowners are renovating their current houses instead.
Whether you are repairing your own home or “flipping” another, there are several steps you should take before you start working on your projects.
First of all, make sure you can afford the repairs while making the house payments before you invest in a “fixer-upper”. Use a mortgage calculator to figure out what the monthly payments are and make sure that you have extra money left over for supplies and emergencies.
If you are renovating your own home, make sure that the repairs are going to be worth it. With a mortgage calculator, figure out the total amount of money you will have paid toward your mortgage by the time you plan to sell. Add the total amount that you plan to spend on repairs. If you are comfortable with the total, proceed with the preparations.
Make a list of all the repairs and renovations projects that you want to work on. Highlight the projects that are most important to you. Make a new list and place the projects in order of priority.
Next, research every single project that you expect to complete. Find the most cost-effective solutions, methods and materials for each project.
Look into which types of renovations turn over the most profit. For every location, there is a threshold that the value of the home will not surpass.
So, if you live in an area where homes sell for $150,000, but you spend more than that in renovations or you add luxuries to your home that exist in $400,000 homes, you will probably not see much profit.
Amazing renovations will probably cause your home to sell more quickly, but the price will remain within the same bracket. Unfortunately, location is the factor that affects cost the most.
Use a mortgage calculator to figure out what price bracket your home is in and what kind of income potential buyers will have to make to be able to afford it.
After completing your research, make a list of all the materials you will need. Estimate the price of each project as well as the length of time it will take to complete them.
Schedule out when you will work on each project. Take weather into consideration. Work on indoor projects during harsh weather and outdoor projects during mild weather.
Mark out the schedule on a calendar. Make several copies and give them to your contractor or anyone else who will be working with you. Sharing an online calendar might be a more convenient method, since you can make edits or changes at any time.
Make sure that your schedule is logical. Unless it makes sense to do otherwise, complete one room or area at a time. Working on three rooms at the same time will cause an overwhelming mess that will make you less likely to complete the project.