Nail your home renovation budget
With the real estate market heating up, it appears that American homeowners are ready to start remodeling again.
After years of decline, home-improvement spending increased 9% in 2012, according to the Joint Center for Housing Studies at Harvard University, which predicts a double-digit surge for 2013.
Establishing a project cap and looking for painless ways to reduce your overall cost will stop you from spending more than you can hope to recoup when it’s time to sell.
Here, a primer on setting — and sticking to — a renovation budget:
Find your number. To figure out what’s safe to spend, you’ll need to determine how much of your home’s value is represented by the room you’re planning to redo, says Omaha appraiser John Bredemeyer, a spokesperson for the Appraisal Institute, which sets national standards. Read more…