How does a homeowner know when to spend a lot of money on a home project versus when it is all right to go a cheaper route? When taking bids for a renovation project, it can be tempting to take the lowest offer, but if the highest bid comes in at $75,000 and the lowest is $30,000, there could be a reason the low bid is so low. Owners should look at NAR’s Remodeling Impact Report to see what the average cost of a particular project is and compare those costs to their bids. Sometimes taking the higher bid saves more money in the long run.
Check out HouseLogic’s collection of articles on ‘nickel and diming’ homes. Speak with some homeowners in your area who have completed renovation projects and if or where they regret trying to save money. Ask a REALTOR® about renovation projects that have caused problems at resale and how those could have been avoided.