Undergoing a home renovation is a big commitment for many homeowners. Mr. Cooper mortgage insights have shown that home renovations have been on the rise in recent years. As a result, many borrowers feel they should be putting time, energy, and money into renovating their homes. Planning major home renovations often take some planning to execute correctly. However, despite careful planning, many buyers find themselves hesitant to take the plunge.
There are a variety of factors to consider before you decide to start renovating. To help you make the most informed decision, we’ve gathered some great feedback and advice from Mr. Cooper on the pros and cons of tackling home renovation projects.
The Truth About Home Renovations
Realistically, most homeowners purchase their home with minor renovations, upgrades, and changes in mind. Very few buyers purchase their “dream home” without making at least some minor exterior and interior changes. Additionally, if you’re staying put as your home begins to age, you’ll likely find yourself wanting to replace or repair worn-out flooring, fading backsplash, chipped paint, and other signs of wear and tear.
In an ideal world, these renovations are affordable, logical, and easy to accomplish. Realistically, this isn’t always the case. Some renovations become complicated, month-long projects that may make it difficult for you to reside in your home. Therefore, you must consider the realities of taking on that significant home project. Here are some things to consider.
Renovations Are Expensive
When deciding to renovate, many homeowners set a renovation budget that allows them to afford the costs associated with the project. In fact, Mr. Cooper mortgage lenders discovered that this is the first step for nearly 80% of all homeowners looking to renovate their homes. When owners have a budget in mind and receive estimates for the work that needs completing, they feel secure in their ability to finance these renovations.
Unfortunately, even accurate estimates for home renovation projects often cost more than homeowners expected. The overall cost of common materials used in renovation projects continues to increase, and the overall price for supplies alone is often shocking. When choosing to hire a professional to complete these projects, many owners found that the prices associated with the manual labor were higher than expected as well.
Another issue that drives the price of renovation can occur mid-project. Major renovation projects may face interruptions due to unexpected problems discovered while the project was in progress. If your contractor uncovers a major issue with the home’s plumbing, foundation, or electrical work, it can cause setbacks and add to the overall price of completion. Therefore, around one-fourth of these projects end up running over budget as a result.
Ultimately, if you’re concerned about the costs associated with renovation, you should consider the risk of going over budget and prepare for excess spending.
Home Renovations Improve Your Home Equity
Not all homeowners purchase their homes with the intent to remain in them for the rest of their lives. Putting money into your home through renovations can help improve your home’s overall equity and increase its market value if you intend to sell it.
Therefore, Mr. Cooper mortgage advisors strongly suggest homeowners should consider their long-term plans before they make renovation decisions. Even if you intend to remain in your home long-term, there are benefits to renovating outside of equity. However, owners who purchase their home as an investment property should seriously consider putting money into the house and making improvements for additional financial gains.
Renovations Can Improve Your Quality of Life
Recent studies have shown that homeowners who are choosing to renovate their properties – especially their kitchens – have seen an overall increase in their quality of life. There are several different reasons for experiencing these improvements. However, it’s important to remember that the typo of renovation impacts the results significantly.
Kitchen renovations often have the most impact on the homeowner’s overall quality of life. Once they completed their kitchen renovations, many owners found themselves cooking at home more frequently. They also found that they were spending more time with family in communal areas such as the kitchen, in part thanks to the space provided by open floor plans.
Ultimately, renovations provide homeowners with a great way to refresh their homes and provide them with the space they need to bring themselves closer with family and loved ones. Renovations can also help repair significant structural and space issues that may lead to discomfort among individuals living in the home. The overall results can be especially beneficial for many families who simply need more from the space they inhabit.
Taking The Plunge on Renovations
Mr. Cooper mortgage lenders often advise clients of both the benefits and the disadvantages of deciding to undergo major home renovations. Larger renovation projects can take months to complete and may present problems for some families living primarily within the home they’d like to renovate. However, the long-term effects of renovating your home can make your day-to-day life easier and improve your mental and emotional state.
Still, deciding whether or not to renovate isn’t a black and white decision. Thankfully, if you’re looking to make changes in your home without uprooting your entire life, you still can. There are plenty of minor home renovations that won’t disrupt your daily activities. However, these renovations serve to improve the overall quality of your home, increase its equity, and improve your home’s appearance.
One of the most common ways homeowners perform minor renovations is by replacing and repairing items like older appliances, cabinets, and flooring. Additionally, you can choose to install new bathtubs and showers in your bathrooms or even upgrade your backsplash. All of these renovations offer some great benefits but are an easy way to avoid the daunting idea of major restructuring and redesign.
Ultimately, the decision to renovate your home is yours and yours alone. If you’re uncertain whether you’re ready to commit to a large-scale renovation, you may want to consider starting small and working your way up. No matter what you decide, there are plenty of ways to make your home feel more like home.