Renovating an Old Home on a Budget | Budget Friendly Home Renovations
June 20, 2024
Do you live in an older home in Indianapolis or the surrounding areas? Whether you chose it for its architectural charm or some other reason, it may be time to make changes. Studies show that 84% of homeowners want to be in their homes more after a renovation.[1]
However, a home renovation is a big commitment that should be carefully considered. Before you start tearing up the drywall or painting over the old woodwork, check out these tips for getting it right.
Is it Worth Renovating an Old House?
Not every home is worth putting more money in, but how can you know for sure? First, consider if the home is suitable for renovation. Houses that may not be worth renovating include those with mold, lead, asbestos, or other toxic materials that would be too hazardous or costly to repair. You may also choose to avoid a home with significant structural faults, such as a sinking foundation.
The Cost of Renovating an Old Home
If the renovation is manageable, consider a basic cost-benefit analysis. Subtract the cost of renovations from the value of your home after the work is finished. You may find that the upgrades you want may not pay off in the end. Scaling back expectations or choosing a different project may be all that’s needed to make the numbers work.
Don’t forget to factor in the costs of supplies, labor, and extras like permits in your renovation costs. Adding on a porch, for example, would include the wood and hardware expenses, pay for hired help, and the permit cost for your homeowner association or city.
The Benefits of Renovating an Old Home
Even with the cost and time involved, fixing up an older home has some unique advantages. Homebuyers are attracted to this type of project for several reasons:
- They can preserve a piece of architectural history.
- The cost to repair may be far less than what it costs to build new.
- Older homes come with unique characteristics that are not found in newer homes.
- Renovating an older home may be more sustainable as it requires fewer new materials.
- Many older homes were made from superior materials and durable construction techniques that are not still used today.
Tips for Renovating an Old Homes on a Budget
So, you’ve decided to take the plunge and renew the look of your older home. You’re in great company. In fact, 86% of homeowners who remodeled one part of their home found themselves wanting to do another![1] Here are some guides to save money during the renovation.
Remodel DIY Where you Can
Perhaps the best tip for a budget home remodel is to do your own projects when possible. The cost of hiring a contractor can signifigantly raise the price of even simple renovations and can diminish any financial returns from your work.
This doesn’t mean you do all parts of every project (especially if it requires special skills or licensure to do it legally.) Things like painting, sanding, refinishing, or cleanup take time and effort but don’t have to be outsourced. Sweat equity matters.
You should also consider the cost of having materials delivered, which can add a high cost to items like lumber or roofing. You may find it much more affordable to rent a truck and trailer and get the supplies yourself rather than pay an expensive delivery fee.
Go for High-Value Home Renovation Projects
Some projects cost a lot and don’t reward homeowners with an increase in home value. According to the National Association of REALTORS,[1] projects that generally produce a good return on investment include the following:
- Refinishing hardwood floors (147%)
- New hardwood floors (118%)
- New insulation (100%)
- New roofing (100%)
- Garage door (100%)
The numbers shown represent the cost recovered.
Save Money By Picking Cheap Upgrades That Make You Happy
Still, other projects that don’t recoup the full cost may be good investments. For example, turning a basement into a living space may give you the much-needed square footage for an older parent or child returning from college. You could even turn it into a rentable living space for extra income.
Projects like painting a house bedroom may not increase the value of your home, but they could make you happier. Homeowners report enjoying their space more after a color change, which may be worth much more than the cost of the paint itself.
Consider Lookalikes Over Brand Names During Remodeling
Scouting out home décor ideas on Pinterest may have you craving the latest in high-end trends, but trends come and go. To minimize the risk (and cost) of designer looks, consider the house brands made by home improvement stores that look like the real thing. Paint, flooring, and even window treatments come in a range of prices and are very close to the same quality and look.
You can also swap out materials, such as more affordable hardwood planks that fit together much like high-end wood products. They come in a variety of colors, shades, and hardnesses to imitate the look of mahogany, cherry, and oak.
Get Help for Your House Remodel
Whether you choose a $1,000 cabinet repainting or convert that attic into a mother-in-law suite, you may need assistance with paying for it all. A home equity loan uses the value you have in your home to pay for the budget home renovation. The changes can increase the value of your home and make your living space more enjoyable. Talk to the Centier team about whether a home equity loan is right for you.
Sources:
[1] 2022 Remodeling Impact Report - National Association of REALTORS® Research Group (April 19, 2022) https://cdn.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf
