It’s the beginning of the year and the time we all set goals, whether they be personal goals like a weight loss strategy, or expenditures, like a family vacation or an exterior home improvement.
Making an exterior home improvement not only adds value to your property but produces many intangible benefits, such as pleasure and pride in your home’s refreshed appearance. When it comes to the most major exterior improvements—getting a new roof or new siding– everyone knows that the cost is considerable. However, it is also easy to under or overspend. How do you know whether your budget will cover the project estimate?
Opinions vary, but most experts tell you to base your budget on a calculation from the purchase price of your home. Experts differ on the calculation though, recommending a spend anywhere from 5-20 percent of your home’s purchase price on home renovations. Any more and you may be spending more than you will be able to recoup when you sell the house.
In other words, if you purchased your home for $250,000, you should spend no less than $12,500 and no more than $50,000 on major home renovations.
When it comes to the average spend on major exterior home improvements, the national average spend for a new roof is $7,530 with most roofs falling between $5,133 – $10,027 according to HomeAdvisor. For vinyl siding and installation, the national average is $9,920, with a typical range from $5,641-$14,212.
In short, there is no magic number for new roofing or siding and everyone’s situation is different. For example, let’s say you want to replace your siding. Besides setting a budget, there are other factors to consider:
–How long you will be in the house
–Geography (the neighborhood)
–Time constraints (changes in home occupancy, etc.)
–DIY or professional work
–Type of Materials Desired (Ex. Wood, vinyl or aluminum siding)
So how do you begin to budget for your project?
- Start with an estimate. Start vetting experts, reading reviews and finding a trustworthy contractor. They will be happy to give you a comprehensive estimate that will help you with your financial planning to complete the project.
- Research payment plans. When you call for an estimate, be sure to ask the contractor how he expects to be paid. Some can help you make arrangements for special payment plans or loan opportunities.
- Research off-season conveniences and specials. Some contractors can be more flexible with rates and installations when the weather turns cooler. Ask if you might expect a discount if you take advantage of scheduling during the off times. Plan your project accordingly.
- Develop a savings plan. Once you know how much you need to save for your project, it’s time to set a strategy to do it! The strategy will be personal and different for everyone. Will it mean dipping into a long-term savings account, making a daily financial sacrifice or delaying the repair until life conditions change? Is there another source (loans, home equity) you can use to fund the project?
- Set a deadline. Committing to a set launch or finish date for your improvement will keep you motivated and on track. It will also help you determine how long you have to save for the project, and if so, how much you will need to save per month to keep the launch date.
Exterior home improvements are investments that increase so much more than your aesthetic appeal. Pro-Homes can help you plan your 2019 exterior home improvement project, whether it is new roofing, siding, windows, or doors. Call us for a free estimate today at 630-790-0800.