Relocation = Renovation #4

Monday, November 18, 2013

New Neighborhood Discovered
Understanding What You Should Spend On Your Renovation

This past weekend Bubba and I cast a wider net in our search for a new home.  There are a cluster of small towns around where we currently live and we felt it was worth exploring.  Boy... was that a good decision!  We came across a dream neighborhood!  If you've been following along then you know that we are searching for an older home with character and the neighborhood to match.  You can see our first neighborhood pick here.  We want a house that needs a little love so that we can make it our own.  This neighborhood matched everything on our check list.

Each home on this street has different architecture and landscape.  They are obviously loved and extremely well maintained making us more willing to invest in the area.

The home lots are a reasonable size.  This house on a corner lot was amazing.  There is a strong feeling of community as you walk around the neighborhood.  People didn't hesitate to stop and speak with me.  Everyone was very friendly and welcoming.

So many wonderful homes that I couldn't pick a favorite.  Rich and mature landscapes are a huge draw when choosing our next home.

I was surprised to see that this beautiful traditional home was decked out for Christmas.... Then I looked at the weather forecast.  Freezing cold with chances of snow for the next two weeks!  We were having an abnormally warm weekend and folks were taking advantage.  It never occurred to this Southern girl that I may have to break my strict belief of "no Christmas before Thanksgiving" to save myself from the bitter cold. 

Just across the street is this absolutely adorable house and it's for SALE!!   

Happiness is a girl that stumbles upon this little gem.  It has a little bit of everything.  The bones and landscape are fantastic.  Not completely thrilled about the ivy on the structure, or what may be underneath, but that's something to worry about down the road.  For now I'm working on getting a look at the inside and a history on the home.
What Should You Spend On Your Renovation Budget

In Relocation = Renovation #3 I shared with you how I found my budget for purchasing a house to renovate.  This week I'll be going over how much of your budget should go towards your renovation.  When it comes to your budget you should always talk (at length if needed) with a realtor in your area.  They can help you better understand your market and what projects provide the best return of your investment.

Find out how much of your home's value is represented by the rooms you plan to renovate:

- A kitchen is 10% to 15% of a home's value.
- Bathrooms are 5% to 10% of a home's value.
- Half Baths are 5% of a homes value.
- If you are considering refinishing an attic or basement you should consult with your realtor.  These are costly renovation that can be a hit or miss as a good return.


Kitchen Renovation
If your home is worth $100,000.00 then your kitchen renovation should be around $10,000 to $15,000.  This is just a guide line to make sure you don't over spend on your renovation.  Going over the suggested max could result in a loss of invested money.  Again.... this is something you should always talk over with a professional in your area. 

If I find a home that costs                          $300,000   
Say it needs the following renovations:
Kitchen                                                     - $45,000
Baths (2)                                                   - $60,000
You should always set aside 20% of your budget for emergencies.
 20%                                                           $21,000
New Total:                                                 $426,000
This shows me that I need to be able to afford $426,000 to renovate this home.  Every renovation budget will be different.  Some kitchens will only need the cabinets refaced saving a big chunk of money while others will need to be gutted.  This is just an example of how I'm developing my budget and providing guidelines for understanding my limitations and possibilities.
Stay tuned as I dig in to more research and we finally take the plunge.

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