Ask Yourself These 15 Questions Before Doing Home Renovations

Renovating your home could make your living space far more comfortable. But renovations can also be costly. Before you start spending your money, make sure to run through these essential questions.

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Some people renovate for the express purpose of adding resale value to their homes. But you should know that most home improvement projects do not allow you to recoup 100% of your investment or more. So, if you're going to renovate, it pays to do so because you want to -- not because you're trying to make money.

If there are things that are actually wrong with your home, it pays to use your money to fix them before spending on renovations. You may be eager to upgrade your master bathroom. But if you have a water heater that isn't working reliably, that's a more important thing to tackle first.

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If you're carrying expensive debt, like a credit card balance, a big goal of yours should be to pay it off as quickly as possible. And that means it probably pays to put renovation plans on hold until that debt is gone. If anything, renovating could mean taking on more debt, so you don't want to start when you're already in the hole.

Inflation is making just about everything more expensive these days. If you need to hire a contractor or purchase supplies, you might spend a lot more than you would have a year ago. So, if you can wait on your renovations, you might end up spending less if living costs come down.

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Renovations can be costly, and you may not want to take on debt in the course of paying for them. Before you commit to a project, assess your savings to see whether you have the cash on hand to cover your renovations outright. And even if you do, make sure you won't leave yourself with too small a cushion.

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You may not have the money in savings to pay for renovations -- or you may not want to dip into it. If that's the case, you'll need to think about how you'll finance your project. You don't want to charge your costs on a credit card because that could leave you paying a lot of interest. But if you're able to take out a home equity loan, that may be a better bet.

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Handling a home improvement yourself could mean spending a lot less than if you hire a contractor. But make sure you're really up to the task. Not only might you need certain skills, but you'll also need to make sure you have the time to get the work done.

Some renovations might force you to have to secure temporary lodging. Others might simply disrupt your routine. For example, if you're redoing your kitchen, you may not be able to cook for a week or so. Figure out the logistics ahead of time so you're not thrown for a loop once the work begins.

The estimates contractors give you for home improvements are just that -- estimates. It's always possible for a given job to cost more than expected, so make your peace with that ahead of time. Just as importantly, make sure you have a means of covering added costs that arise.

You may be eager to improve your home. But if you're on the cusp of having to write out tuition checks for your kids' college, you may want to think twice about doing renovations if it means you can't cover those education costs. Think about your different pressing goals -- and how doing renovations might impact them.

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You may have lofty goals with regard to your next renovation. But if money is at all tight, you may want to approach it more conservatively. Think about the ways you can reduce your costs, such as making compromises on the materials you use or doing some of the work yourself as opposed to outsourcing all of it.

ALSO READ: 3 Signs You're Going Overboard on Home Improvements

You might think you're up to the challenge of doing your own renovations. But have you considered the potential for injury or property damage? Eager as you may be to avoid hiring a contractor, in some cases, that's really the best bet.

Some renovations require you to get permission from your town or city ahead of time. And you'll often need your work inspected after it's done. Make sure to follow the rules so you don't wind up with fines or get stuck having to redo any of your work.

ALSO READ: Why It Doesn't Pay to Skip the Permits When Improving Your Home

Embarking on a big renovation could mean lots of noise coming out of your house and different people coming in and out for days on end. The courteous thing to do in that situation is to give your neighbors a heads-up. This especially holds true if they work from home.

If you love your home and the street you live on, you may want to stay put, even if it means spending a lot of money to improve your home. But before you go that route, ask yourself whether it pays to seek out a home where the work you're looking to tackle is already done. If you have many renovation projects on your list that will cost you an estimated $200,000, it could make more sense to move to a home that costs $150,000 more but doesn't need any work.

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Renovating your home could improve your quality of life. But before you jump into your next project, take the time to address these questions. Doing so could save you money, time, and aggravation.

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