Methods for Making Successful Home Renovation Budget

Methods for Making Successful Home Renovation Budget

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There is nothing like staying at home for real comfort – Jane Austen

Everyone gives importance to their homes, even though they are busy with their lives they must prefer home for relaxation, maybe after work, play, celebrations, travelling etc. So it’s important to maintain your home as neat and undamaged within your budget.

The home renovation budget is a successful financial plan to create an effective budget valuation for all the home repairs. It is an essential aspect to control and avoid over expenses and also helpful to estimate your budget.

Regular maintenance is important part of managing a safe and comfortable home, it’s possible with the following methods. Here we list out and explain two useful methods to plan the home renovation budget for home repairs and improvement.

  • The Assessed-Value Method
  • The assessed-value method is very easy method to estimate your home renovation budget. Most of the people generally use this method, here the budget for renovation or repairs per month is between 1% to 4% of the assessed value.

    For example:

    Based on the 1.5% of assessed value estimation method, the monthly cost for repairs and maintenance are calculated on the average value of the both A and B source of home estimated value.

    The A value is $250,000 and the B value is $300,000, here the average value is $275,000. 1.5% of the average amount is about $4,125. It is divided by 12 (months per year), so the estimated monthly budget is $343 for home repairs.

    The assessed method is more useful for large properties or homes, make sure that the source of the assessed value estimate must be correct.

  • Itemized Project Cost
  • It is nothing but maintaining a spreadsheet to figuring out the cost of each separate home repair and maintenance. This helps you to clearly understand the budget after few days also. The total amount of each repair is estimated as total annual budget and it is divided by 12 (months per year).

    For example:

    The total annual amount is $5,550 in this the monthly estimated budget is ($5,550/12) $462.

    The monthly estimations are vary from each home because of the owner’s requirements and budget.

    These methods are very helpful in home renovation budget plan to control over expenses. These customizable solutions are useful to increase the lifespan of your home, also the best ways to repair old homes within in a low budget and make sure that your home’s market value is improved than others.

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