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.
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.
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.
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.
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.
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.