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Estimating renovation costs is where the greatest risk lies
When renovating your investment property, accurate cost estimations are critical. This complex phase of the investment process is where the greatest risk lies. Your main focus is to be “on budget” so an accurate estimate and expected completion date are important. The last thing you want is a money pit and to be excessively over budget. A reliable contractor or handyman can provide you estimates, but what if you plan on tackling the renovations on your own?
Estimate calculators for investors
For those estimating their own renovations, the use of an estimate calculator is a valuable resource. Like with any estimate, it will not be exact, but it will give you a ball park figure and help you plan your next step. Until beginner investors gain experience, it is best to use a contractor, but an estimate calculator should still be used to compare your estimates with the contractor estimates.
Where can I find an estimate calculator?
As a suggestion, try out different estimate calculators. Do some sample runs to see how the calculators work, and bookmark the estimate calculators that work best for you.There are many websites with this type of information. To locate them, type in the search phrase “home renovation cost calculators” or “renovation estimate calculators”.
Here is an example of what you will see when performing a renovation estimate calculator search:
Every investor hopes to come in under budget, but with renovations it is not unlikely that you will run into unexpected costs. When using an estimate calculator, keep in mind that material costs differ by location so this will have an affect on your final budget. Remember, your initial estimates are guesstimates — the actual costs will not be determined until your selections are made and you have a finalized budget. Prepare for unexpected costs by keeping a reserve budget in the amount of 15% of your original budget.
Estimating renovation costs is one of the most important steps in the real estate investment process. Many newbies end up under estimating the actual costs, and as a result their profits are drastically reduced. For your first few projects, it is wise to use a qualified contractor, but if f you are estimating renovations on your own, renovation estimate calculators are a great resource.. Not only do they provide a ball park renovation estimate, but they ensure investors that they haven’t miss any items in the estimate.