February 2019

Budgeting for a home renovation

Renovations are a great way for your clients to increase the value of their home. Share these simple steps to help them plan a renovation budget that best meets their needs.

1

Know what you want

When advising a client on a home renovation budget, it’s important they be specific. Knowing what they want will help determine their budget.

2

Start with a budget limit

What’s the maximum they are willing to spend? Once they know what they want and have a limit, they can plan a budget.

3

Give yourself budget flexibility

Once they have a budget, they should add 15% to it. Usually, there are extra costs associated with renovations. Remind your clients not to forget to account for taxes and shipping costs on materials.

4

Weigh the cost and benefit of custom finishes

Special-order items usually require more time and money. Your clients should consider whether they can accomplish their goals by sticking to lower-cost finishes or other alternatives.

5

Limit splurges

Inform your clients to stick to their initial plan and budget – especially if money is tight. While it’s tempting, adding extras along the way can be costly.

As a Bank of America lending specialist, I am happy to talk to you about a Home Equity Line of Credit (HELOC) to finance your home renovations.

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